Long added to Nifty, but still Banknifty is in short-covering mode. However sentiment changes to positive. Looks mildly positive. Time to sell more PE and less CE

Time: 7:55 am VIX:​​ 22.04​​ SGX Nifty:​​ ​​ 14845​​ FII:​​ +1223​​ DII:​​ -633

 

Option Data Analysis (May)

 

Index

Max Pain

PCR

Highest OI

PE

 

CE

Highest Increase in OI

PE

 CE

Nifty

14600

1.50

14000

15000

14200 (23%)

14700 (29%)

Banknifty

33000

1.18

28000

37000

28000 (10%)

36000 (12%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

27-May-21

14,781.00

101.90

0.69%

11,588,850

724,275

6.67%

BANKNIFTY

27-May-21

33,011.30

37.65

0.11%

1,433,350

-70,875

-4.71%

 

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

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

  • FII is in sell mode.​​ 

  • Highest PE is at 14000 and highest CE is at 15000.

  • PEs are added at 14200 and CEs are added at 14700.

  • More number of CEs are added than PEs.

  • Max pain is at 14600 (No change in Max Pain)

  • PCR is not changing.

  • Net future Position is in neutral.

  • Time to sell more CE.

 

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

 

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

  • Highest PE is at 28000 and Highest CE is at 37000

  • PEs are sold at 28000 and CEs are sold at 36000.

  • More​​ number of PEs have been added than CEs.

  • Max Pain is at 33000 (No change in Max Pain)

  • PCR is not changing.

  • Net future position is in neutral.

  • Time to sell more CE.

 

Executed Trades

  • Exited put butterfly with 1L Profit.

  • Done only BN and made a profit of​​ 5L+

Trading Plan

  • Will do nothing

 

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.