Huge shorts added in Nifty and Banknifty. Banknifty looks too weak with running down max pain. Looks bearish though SGX looks positive. Time to sell CE

Time: 8:45​​ am VIX:​​ 25.47​​ SGX Nifty:​​ ​​ 15830​​ FII:​​ -893​​ DII:​​ -920

 

Option Data Analysis (Mar)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

14800

2.29

14000

16000

14500(26%)

15000 (34%)

Banknifty

35500

1.17

25000

37000

33000 (82%)

33000 (145%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

 ​​ ​​ ​​ ​​ ​​​​ Change (%)

NIFTY

25-Mar-21

14,690.70

-334.70

-2.23%

3,142,800

1,227,075

64.05%

BANKNIFTY

25-Mar-21

35,220.00

-709.60

-1.97%

498,575

225,200

82.38%

 

Nifty​​ (Over all FNO Position: Bearish)

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

  • FII is in buy mode

  • Highest PE is at 14000 and highest CE is at 16000.

  • PEs are added at 14500 and CEs are added at 15000

  • More number of CEs are added than PEs

  • Max pain is at 14800 (No change in Max pain)

  • PCR is not changing

  • Net​​ future Position is in short​​ 

  • Time to sell CE

 

Banknifty​​ (Over all FNO Position: Bearish)

 

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

  • Highest PE is at 25000 and Highest CE is at 37000

  • PEs are sold at 33000 and CEs are sold at 33000

  • More number of CEs have been added than PEs

  • Max Pain is at 35500 (Down by 500 points))

  • PCR is not changing

  • Net future position is in short

  • Time to sell CE

 

Executed Trades

  • Sold 37500 CE @ 22 at the close in BNF

Trading Plan

  • Will manage naked CE

  • Will initiate positions in​​ March

 

My Position​​ 

 

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.

 

 

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