Trade setup for Monday 03, February 2020

All you need to know as a trader or Investor

Budget could not cheer the trader and investor and reaction can be seen in both the benchmark index. Nifty fall over 300 points where Sensex fall nearly 1000 which is their biggest single day fall in around 5 years.

Experts say that budget is not as expected and the reason for this big fall along with Global issues.

Today's session is likely to see a shaky start however there is possibility to recover specially in cash. We may see some buying at stock specific.Same is recommended but be cautions.

Option Analysis:

Maximum open interest on call side at 12000 of 19.20 lakh contracts.

Significant call writing was seen at the 11,800 strike price, which added 9.34 lakh contracts.

Maximum open interest on put side at 11500 strike price of 17 lakh.

Put writing was seen at the 11800 strike price 4.5 lakh new contracts gets added.

Put unwinding was seen at the 12000 strike price.

What to look for:

If we look technical chart of nifty RSI on the daily chart stood at 30.13, and marked a fresh 14-period low, which is bearish but at same time it shows nifty at oversold level and buyer may get active on this level feeling right time to enter. It is advisable to watch for first 30 minutes and if nifty close first candle above 11700 than there is high possibility to nifty sustain above this level and can see further upside else weakness continues.

As per our opinion one should make fresh purchases at lower levels, and that to stay stock specific.

Disclaimer: All the information shared only for learning purpose, we do not provide any tip or recommendation. Please do consult with your investment adviser before making any trade or investment decision.