Banknifty is too weak & IT and RIL are strong. Nifty should cross 11250 to go up further. Can sell CE in BNF & PE in Nifty

Time: 8:25​​ am ​​ VIX:​​ 25.02 ​​​​ ​​ SGX Nifty: ​​ 11117​​ FII:​​ -453​​ Cr​​ DII:​​ -978​​ Cr

 

Option Data Analysis

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

11000

2.05

11000

11500

10900​​ (13%)

11700 (113%)

Banknifty

22000

0.92

21500

23000

21500​​ (31%)

22500 (142%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

27-Aug-20

11,115.00

-63.20

-0.57%

4,467,900

1,090,650

32.29%

BANKNIFTY

27-Aug-20

21,822.15

-769.80

-3.41%

496,875

124,025

33.26%

Nifty​​ (Over all FNO Position: Range-bound)

  • Global market is bit​​ up​​ and SGX nifty is bit up

  • FII is in​​ sell​​ mode

  • Highest PE is at 11000 and highest CE is at 11500.

  • PEs are added at 10900 and CEs are added at 11700

  • More number of​​ CEs are added than​​ PEs

  • MAX Pain is at 11000 (no change)

  • PCR is not​​ changing

  • Net future Position is in neutral​​ (Including Aug)

  • Good time​​ for ratio spreads

 

Banknifty​​ (Over all FNO Position:​​ Bearish)

 

  • ICICI Bank is down and HDFC Bank is​​ down​​ in USA.

  • Highest PE is at 21500 and Highest CE is at 23000.

  • PEs are sold at 21500 and​​ CEs are sold at​​ 22500.

  • More number of CEs have been added than PEs

  • Max Pain is at 22000 (down by 500 points)

  • PCR is​​ decreasing

  • Net future position is in short

  • Good time to sell CE with hedge

 

Executed Trades

 

  • Exited butterfly with Rs 350 loss

 

Trading Plan

  • Will manage straddle, calendar and ratio spread

 

My Position

myblog

Jegathesan Durairaj, a mathematician by qualification, an Ex-software professional and now a full time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity in twitter as itjegan, with huge followers. He had won Zerodha 60 Day Challenge – 10 Times round-the-clock. He is one of the prime Option Writing Trainer and tutored close to 1000 members till now.

He is the Mastermind of CapitalZone – Active Option Trading where Traders can avail Trading Chart with customised indicators, FNO tools and Payoff analysis. His keynote is to provide whole FNO deets to be handy for Traders in a sole place.

Now he is taking more heed on hedging portfolio in Option Writing where we might subject to more market risk. He is streamlining his strategies often and improving perpetually. At this time unfolding ways to measure good-quality Trend Following System.

Conducting workshop in all Metro Cities (Delhi, Mumbai, Bangalore, Chennai and Coimbatore) often based on queries from Traders.

 

 

Leave comment

Your email address will not be published. Required fields are marked with *.