No long build-up and short build-up position in FNO. PCR and Max Pain are normal. Nifty is looking for a direction

Date: 29/May/2017                                                                           Time:
4:45 am  
VIX: 10.87             SGX Nifty: 9578               FII: -274 Cr                DII: +1009 Cr
Open
Interest Analysis
Index
Max Pain
PCR
Highest
PE
CE
Highest Increase
PE
          CE
Nifty
9400
1.09
9400
9600
9500 (49%)
9800 (23%)
Banknifty
23100
0.85
22000
23500
22500 (80%)
24000 (61%)
                              
Technical
Data and Analysis
Index
Support
Resistance
4 Hour Trend
Daily Trend
Weekly Trend
Nifty
9380
9634
Up
Up
Up
Banknifty
22264
23310
Up
Up
Up
Future
position and Volume Analysis (Nifty and Banknifty stocks)
Long Build Up
Profit Booking
Short Build Up
Short Covering
High Delivery Volumes
Cipla, Ultratech,
Andhara, Sunpharma, Reddy
Reliance, ONGC, BOSCH
GAIL, HCL
Nifty
(Over all FNO Position: Neutral)
·                    
FII selling is not much and huge in-flow will save the market.
·                    
Global market is up and SGX nifty is flat.
·                    
No speculative position is taken yet in FNO. Only short covering
happened on Friday.
·                    
Highest CE is at 9600 and highest PE is at 9400. Hence market
may trade in very narrow range.
·                    
Shorts added only to pharma sector again.
·                    
Huge number of PE added to 9400 and hence market has least
chance to go down below 9400.
·                    
Max Pain came down 9400 and PCR is normal.
·                    
Very less delivery volume, market will hardly make a move.
Banknifty (Over all FNO Position: Neutral)
·                    
ICICI Bank is up and HDFC Bank is down in USA.
·                    
Highest CE is at 23500 and good amount of 22500 PE is also sold.
·                    
Banknifty is bullish by OI and it is bearish by PCR.
·                    
Upcoming position will give better clarity of movement.
·                    
Hence Banknifty will be less volatile.
·                    
Max Pain Jumped up to 23100
·                    
PCR is poor.
·                    
Good time to play in weekly option.
Executed Trades
ü 
Had taken position in weekly expiry
ü 
Sold PEs at 22400, 22500 and 22600.
ü 
Sold CEs at 23700, 23800 and 23900.
ü 
Having 50% free cash.
Trading Plan
Ø 
Planning to sell Monthly PE in Banknifty.
Ø 
Not planning to trade in Nifty as of now as there is not much
premium right now.
Ø 
As we have 5 weeks now, I am planning to do more of weekly
option in Banknifty.
Open Positions

Product Instrument Qty. Avg. price LTP P&L Chg.
NRML BANKNIFTY01JUN1722400PE NFO -600 18.54 8.00 +6324.00 -56.85%
NRML BANKNIFTY01JUN1722500PE NFO -600 14.66 10.50 +2496.00 -28.38%
NRML BANKNIFTY01JUN1722600PE NFO -600 16.30 15.00 +778.00 -7.96%
NRML BANKNIFTY01JUN1723700CE NFO -600 14.71 14.65 +34.00 -0.39%
NRML BANKNIFTY01JUN1723800CE NFO -600 9.73 8.00 +1038.00 -17.78%
NRML BANKNIFTY01JUN1723900CE NFO -600 8.69 5.20 +2096.00 -40.18%
TOTAL 12,766

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.

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