F&O Trade Analysis for trade date 07-Dec-2020

Nifty

FIIs Net sold 11765 Contracts worth Rs 1129.79 Cr

Futures Data
- Retail participants added 8.39K Long Contracts & exited 1.38K Short contracts
- FIIs booked profits in 12.61K Long Contracts and exited 850 Short Contracts
- Pro traders added 1.78K Long contracts and exited 508 Short contracts

Call Option
- Retail participants added 1.11 Lakh Call Long Contracts & added 94.5 K Call Short contracts
- FIIs added 13.05 K Call Long Contracts and added 15.35 K Short Contracts
- Pro traders added 23.18 K Call Long contracts and added 38.29 K Call Short contracts

Put Option
- Retail participants added 2.10 Lakh Put Long Contracts & added 1.78 Lakh Short contracts
- FIIs added 7.11 K Put Long Contracts and added 14.75 K Put Short Contracts
- Pro traders added 55.48 K Put Long contracts and added 79.87 K Put Short contracts


FIIs booked profits in Index Futures and Retail traders have gone long in Index Futures and in Options have positioned themselves in expectation of a fall. Market rarely favors the bigger position in Options.

Nifty was in green but Nifty volumes were 18.5% lower than yesterday and reduction in Open Interest was also seen where as
Bank Nifty volumes were 28.9% lower.

We could potentially be in for a range bound movement.

Given the data, one may consider selling Nifty 10 Dec expiry
13500 Call Option around 35
&
13200 Put option around 30

Lot size 75

Max profit potential 75*65= Rs 4875/-
Loss if Nifty closes above 13565 or below 13135 on 10 Dec 2020

Take care & safe trading...!!!

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Comment:

Nifty 13392

In morning our Data analysis suggested a range bound movement in Nifty...
Need we say any more... This is what Data Analysis can do for you... Help you rationalize your expectations and plan your trade accordingly

Strategy update
Nifty 13500 Call option suggested selling at 35
CMP 22.40

Nifty 13200 Call option suggested selling at 30
CMP 18

Net profit in strategy so far

75*(65-40.40) = Rs 1845/-

Happy trading...!!!

Comment:

Both the Options expire worthless thereby giving us full profits in the strategy


75*65= Rs 4875/- per strategy lot

Happy trading...!!!