MENTORING 9, DAY 02: 07 Jun 2023

Hello team,

Let us analyse data.

OI Analysis

Bank Nifty has closed at 44213.

Highest put build up is at 44000 with 41 lakhs of OI and 44200 has the
highest Call OI of 34.6 lakhs. We could also see 22 lakhs of Put OI at the
level. Premium are low and as of now data is giving a sideways bias.

Monthly OI
Whenever we are observing the monthly OI chain, we have to look at the
500-round strikes because there won’t be good build up in the other strikes.

We could see ITM build up happening at 43000 with 14.9 lakhs of Put OI
and 9.2 lakhs of Call OI. Someone might have created 43000 straddle. These
writers are expecting market might go sideways or they are not expecting
an up move.

Yesterday was a choppy market and after 3PM price rallied and closed at
day’s high.

44260 is the level upside if price breaks 44260 next level is 44500 and
downside level is 44000.

Today could be a choppy market because of RBI policy tomorrow.

9:08

Preopen settled. Bank Nifty opened gap up, 0.35%.

If price is giving one dip, it will be a good opportunity to go long. We could

also see that price is shifting to higher level from 43800 to 44000. Today,
44150 might act as a support.
Trades and Logic
1) Took a PE trade, 1800 qty as last candle turned Eno from higher level and
price breaking VWAP. OH on Put side is also pending.

Green candle

Entry

Reduced 600 qty

Exited all at cost

Scalping trade
Exit: Price breaking VWAP.
2) Took a PE trade, 1800 qty as price rejecting VWAP sand trying to close
below VWAP. OH on Put side.

Entry

Target

Charts of banking stocks.

 Exited all

Exit: Price breaking VWAP. Scalping trade

3) Took a PE trade, 2700 qty is not able to sustain above VWAP and
rejecting VWAP. OH on Put side.

Entry
 First target

OH

Reduced 900 qty

Reduced 900 qty

 Exited all

Breakdown trade

4) Took a PE trade, 1800 qty as price is rejecting VWAP as price is not able
to sustain above VWAP and OH on Put side.

Entry

MACD crossing zero

Put strike MACD is also suggesting an upside spike in strike price. MACD line
is trying to cross zero from negative levels.
 Future chart

Added 900 qty

Exited all

Scalping trade

Note:
Price is inside a range and all EMAs are coming together which suggest
sideways market and ideal trade if 200 EMA or VWAP break.

OI Analysis

OI helps to gauge how market participants looking forward with their

position OI gets created when there are two parties comes in to a contract a
buyer and seller. We have to analyse OI from seller’s perspective and the
level where buyers would get benefited.

Total PE-CE OI difference

PE-CE OI change is important here and now it is 86.7 lakhs. This suggest Call
writers are more which is pointing that market might not rise much.

At 11 we could see that total Call OI change of 80 lakhs where as Put OI

change of 23.3 lakhs happened. We could see strong build up in Call side
than Put.

Nifty PE-CE OI difference

Nifty data is suggesting bullishness and strong Put build up happening.

Nifty OI

Highest Put OI is at 18600 with 1.9 crore of OI and highest Call OI at 18700
with 1.3 crores OI. 18650 has Call OI of 92.5 lakhs and Put OI of 1.2 crores,
this suggest 18650 might be acting as support or these writers are not
expecting market below 18650.
If 18600 Put writers has to trapped then market needs to go below
18580(18600-20(LTP)). 18580 is the breakeven level. If market is breaking
18580 then these Put writers will be in panic and they would also turn into
buyer.

5) Took a long strangle trade, 500 qty 44000 PE and 44300 CE at 12:10
expecting move either side because of RBI policy. Premium is also low.
Note: Nifty mid cap has broken out from flag and pole pattern.

6) Took a CE trade, 1800 qty as price breaking VWAP after making W

pattern.

Entry

Reduced 900 qty at cost

Hourly candle
Nifty going higher

Stop loss

Added 900 qty

Strike price at 200 EMA

 Open Low in Put

Exited all

Scalping trade

Took a CE trade again 1800 qty as price breaking high and strike price also
breaking 200 EMA.

Entry

All indices are in green.

 Added 1800 qty

Exited all

Loss

Buying and Selling climax

Somebody who has bought from low level the big green candle would be
the profit booking area. It is a rangebound day. So, people would trade
between support to resistance and resistance to support. The volume of
big green candle(marked) might be extortion volume and not buying
volume.

We could see in the below picture, that all the selling was done with volume
and highest volume at bottom with a green candle is called as selling climax.

**************************************************************
Watch out:

*Please keep a watch on the timings which is at the right bottom of each
picture. This will help you to understand about how long the trade has been
held or if it is a quick scalping trade.

*After each trade you can see a green/red/orange mentions indicating what
kind of a trade it was. For e.g.:
Scalping trade Scalping trade Scalping trade

After the trade if it is mentioned as “scalping trade” in green then it is in

profit, if it is mentioned in red then it would have hit stop loss and if it is
mentioned in orange then the trade would have exited at cost.

We have shared the momentum setup and other relevant study materials. If
you still have not seen it or have any doubt regarding the set up kindly
watch the videos and read the pdfs in the google drive.

Momentum Mentoring 9

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