Only Short Covering lifted Nifty; HDFC Bank & ICICI Bank lifted Banknifty. Fresh position from today will decide the direction.

Time: 4:45 am      VIX: 10.45    SGX Nifty: 9510    FII: +589 Cr    DII: -236 Cr
Open
Interest Analysis
Index
Max Pain
PCR
Highest
PE
CE
Highest Increase
PE
          CE
Nifty
9450
1.04
9300
9600
9400 (65%)
9800 (66%)
Banknifty
22900
0.82
22000
23500
23000 (215%)
23500 (237%)
                              
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
Kotak, ICICI, BOSCH, Indusind, Infratel,
HDFCBank
Ultratech
Cipla, Redddy, Auro,
Sunpharma
PNB, Idea, Airtel,
Reliance, Federal, ITC, HDFC, Infy
Wipro, Infy, Infratel,
Rel, HDFC, MM
Nifty
(Over all FNO Position: Neutral)
·                    
FII started buying.
·                    
Global market is up and SGX nifty is flat.
·                    
Sudden short covering and long position in banking lifted the
market.
·                    
Highest CE is at 9600 and highest PE is at 9300. Hence market
may trade in very narrow range.
·                    
Shorts added only to pharma sector.
·                    
Huge number of PE added to 9400 and hence market has least
chance to go down below 9400.
·                    
Max Pain jumped to 9450 and PCR is weak.
·                    
Decent delivery volumes yesterday.
Banknifty (Over all FNO Position: Neutral)
·                    
Both ICICI Bank and HDFC Bank are up in USA.
·                    
HDFC Bank and ICICI bank stole the show.
·                    
All CEs are wound up yesterday and aggressive long position
lifted Banknifty.
·                    
Highest CE is at 23500 and good amount of 23000 PE is also sold.
·                    
Hence Banknifty will be less volatile.
·                    
Max Pain Jumped up to 22900
·                    
PCR is poor.
·                    
Good to sell CE in Banknifty.
Executed Trades
ü 
Done expiry trading. Had fought from afternoon.
ü 
Managed to make loss of 50K from 110K.
ü 
Exited all positions.
ü 
Having 100% free cash.
Trading Plan
Ø 
There was no attractive premium yesterday and hence did not
execute any trades.
Ø 
Planning to sell CE in Banknifty and PE in Nifty.
Open Positions

No
positions

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.

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