Banknifty momentum comes down & it is weaker than Nifty. May lead in range-bound market. Time to sell PE in Nifty and CE in Banknifty

Time: 8:00​​ am VIX:​​ 20.62​​ SGX Nifty:​​ ​​ 14278​​ FII:​​ +382​​ DII:​​ -990

 

Option Data Analysis (Jan)

 

Index

Max Pain

PCR

Highest OI

PE

CE

Highest Increase in OI

PE

 CE

Nifty

13900

1.68

13000

14000

14200(78%)

14200 (29%)

Banknifty

31200

1.72

28000

33000

32000 (107%)

33000 (11%)

 

Future Analysis (Nifty & Banknifty)

Symbol

Expiry Date

Last Price

Chg
(Rs)

Chg
(%)

Open Interest

Change in OI

Change (%)

NIFTY

28-Jan-21

14,203.40

13.95

0.10%

12,624,300

255,375

2.06%

BANKNIFTY

28-Jan-21

32,086.00

182.90

0.57%

1,799,625

67,250

3.88%

 

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

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

  • FII is in buy mode

  • Highest PE is at 13000 and highest CE is at 14000.

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

  • More number of PEs are added than CEs

  • Max pain is at 13900 (No change in max pain)​​ 

  • PCR​​ is not changing

  • Net future Position is in neutral

  • Time for short strangle

 

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

 

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

  • Highest PE is at 28000 and Highest CE is at 33000

  • PEs are sold at 32000 and​​ CEs are sold at 33000

  • More number of PEs have been added than CEs

  • Max Pain is at 31200 (Down by 300 points)

  • PCR is not changing

  • Net future position is in neutral

  • Time to sell​​ CE

 

Executed Trades

  • Exited short strangle

  • Rolled up PEs in Chicken IC &​​ Elite+

  • Sold 15000 CE in Chicken IC

Trading Plan

  • Will Manage Elite+,​​ Chicken IC​​ and Straddle

 

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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