Market Outlook for Opening on December 07, 2018

Stock/ Index

NIFTY 50

Long term trend

Slight downward slope, spot has come below the trend line

Short term trend

Has turned downward, spot below the trend line

Bollinger band

The spot is below the MA and in the middle of the lower channel

Oscillator 2

Postive, but gap is very narrow. Have bearish undertone

Oscillator 3

Negative, expanding

Closing price (Spot price)

10,601.15

Change from previous day

  - 1.69%

Nifty future premium (december expiry)

 + 18.65

Current position bias

Short bias with extra hedging, sweet spot is between 10,450 and 10,600. Don't want outside this range.

Maximum Open interest

Puts of 10,000 / 10,200 / 10,500 / 10,700/ 11,000 Calls of 10,900 / 11,000 / 11,500

 

Conclusion

  1. Expect a significant gap down tomorrow, based on both US markets and data expectations.
  2. Would suggest not to sell post the gap down.
  3. The Put-Call ratio has fallen.
  4. This is a place to start buying in cash in small amounts.
  5. Expect bottom formation around 10,200. Don’t hedge more and don't sell more. Wait out for sometime.
  6. Can consider winding down sell positions, but unwind hedges alongwith and don't create unnecessary naked positions. However, maintain a short bias.

Disclaimer: The views expressed herein are purely personal and basis experience and not a recommendation to buy or sell. We are not SEBI registered investment advisors or research analysts and these are positions taken in personal capacity.

 

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