01 March 2020

Trade Setup Bank Nifty 02.03.2020



  • It was no brainier on Friday, every pull back is sold into. 
  • Indices managed to close in Negative.
  • Surprisingly Dow futures recovered 1000 points and closed positively on Friday. 
  • Monthly, Weekly, Daily Pivot is formed lower low formation which is bearish sentiment.
  • Huge short were added that brings Max Pain to 29500 level.
  • FII were net short holding Long to short positions 32% vs 68% respectively in index futures and Options.
  • Closing price is below Daily pivot which is bearish sentiment.
  • All depends on how market will open on Monday. 
  • CPR width widened, which imply there could be side way movement for short term.
  • Based on volatility all put premium shoot up significantly. 
  • VIX up 30% on Friday. 
  • Key Support and resistance to watch out for 28500 to 28300 area should be strong support down side, upside 30000 which is weekly 50 moving avg. 
  • only if there is some good news about virus remedy could lift the market (short covering), until then it would be sell on rise rally.   
  • as OTM Call and Put option premiums are high good for short sellers to collect the premium.

Disclaimer: I am not a SEBI register advisior, The above trade setup is purely based on my own study and analysis. i am not giving suggestions to buy / sell specific options. please consult your financial advisors / do the due diligence before taking any trade.

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