Not much speculation seen though market went up. Banknifty is weaker than Nifty. may lead to flat market. Time for range-bound strategies

Time: 7:43​​ am VIX:​​ 18.03​​ SGX Nifty:​​ ​​ 13415​​ FII:​​ +3792​​ DII:​​ -2767

 

Option Data Analysis (Dec)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

13000

1.78

12000

13000

13300(162%)

13500 (8%)

Banknifty

29500

1.43

27000

32000

26500 (19%)

30500 (42%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

31-Dec-20

13,382.80

71.20

0.53%

12,769,050

237,525

1.90%

BANKNIFTY

31-Dec-20

30,267.00

76.05

0.25%

1,784,650

26,625

1.51%

 

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

  • Global market is flat and SGX nifty is flat

  • FII is in buy mode

  • Highest PE is at 12000 and highest CE is at 13000.

  • PEs are added at 13300 and CEs are added at 13500

  • More number of PEs are added than CEs

  • Max pain is at 13000​​ (Up by 100 points)​​ 

  • PCR is not changing

  • Net future Position is in neutral

  • Time for range bound strategies

 

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

 

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

  • Highest PE is at 27000 and Highest CE is at 32000

  • PEs are​​ sold at 26500 and CEs are sold at 30500

  • More number of CEs have been added than PEs

  • Max Pain is at 29500 (down by 1500 points)

  • PCR is not changing

  • Net future position is in neutral

  • Time to sell more CE

 

Executed Trades

  • Rolled 13500 CE to 13900 - IC

  • Rolled 12400 PE to 12800 – Strangle

  • No changes - Straddle

Trading Plan

  • Will manage short strangle, short straddle and chicken IC

 

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.