MENTORING 9, DAY 03: 08 Jun 2023

Hello team,

Let us analyse OI.

OI Analysis

Highest Call build up is at 44500 with 42 lakhs of OI. Price breaking 44500
might give a good up move. Highest Put build up is at 44000 with 53.2 lakhs
of OI. We have to see how Call writers reacts if market is moving higher.

9:08

Preopen settled gap down, 0.15%.

As today is RBI Policy it is better to observer the market for first 1 hour and
once RBI policy is announced we could look for trader as per price action.

Spot Level

Upside the level is 44350 and above that 44500. Downside the level is
44150.
Trades and Logic
1) Took a CE trade, 2700 qty as OH on future and price bouncing from
Previous day VWAP.

Entry

Reduced 1800 qty

 Exited all

Scalping trade

2) Took a long strangle trade, 1800 qty 44500 Call and 900 qty 44100 Put
expecting a move either side because of RBI policy announcement.

Entry

OHs on Call side is pending to hit.

OH
 OH

OH

OH

BN chart

Reduced 1800 qty CE at 10:06.

 Reduced 500 qty CE

Exited all Put position

Added 2700 qty CE

Exited all

Breakout trade
Note:

Left side chart is the difference between future and spot, right side chart is
the spot chart. If you observe even when spot is going up future is not. So,
someone is controlling the up move by shorting future.

Future – spot going down

Spot going higher

Yesterday when market was falling difference between fut sand spot was
rising and vice-versa.
3) Took a CE trade, 3600 qty as price trying to break day high.

Entry

Exit

Breakout trade
Exit: No follow up.

4) Took a PE trade, 2700 qty as price breaking 20 EMA and VWAP.

Entry

Added 2700 qty

 Reduced 1800 qty

Nifty breaking day low

Added 1800 qty

Reduced 1800 qty

Reduced 1800 qty at 11:48.

Reduced 600 qty

Reduced 400 qty

Added again

Reduced few qty at cost

 OL in HDFC bank

OL in ICICI bank

Target

Reduced 900 qty at 12:00.

Reduced 800 qty at 12:01.

 Nifty going down with volume

Bank Nifty breaking 200 EMA

Reduced 1200 qty

Note: When an index is at its all-time high, all the underlying stocks should
give up move same time. But here they were managing the banking stocks
differently.
 Exited all

Momentum trade

OI Analysis

Highest Call OI is at 44500 with 1.1 crores of OI and highest Call build up is
also at the same level with 77.5 lakhs. These writers are expecting that the
market would not go above 44500. We could see similar Call and Put writing
at 44200-300 levels which suggest that market could go side ways now. For
market to breakdown then the Put writers needs to unwind their position.

Trending OI in Bank Nifty

We could see that Put OI is reducing. Initially trending OI was positive and
they started to exit their position which gives a bearish bias.
Above is the line chart of 44300 Call and Put with price, OI and VWAP. We
could see that Call OI is rising sharply and Call price is below VWAP whereas
Put OI is reducing. This is suggesting a possible down move.

Nifty OI

18700 has Call OI of 2 crores and Put OI of 1.7 crores. There is a tough fight.
These writers are expecting the market to stay between 18650-18700.
5) Took a PE trade, 2700 qty as price rejecting 20 EMA.

Entry

Reduced 900 qty at cost

Exited all

Rejection trade
Exit: Price breaking the EMAs.

Note: *Even when market went higher breaking VWAP, ATM strike price is
still below it VWAP.
 Future breaking VWAP
and going higher

ATM strike below VWAP

*Put and Call strike price are below VWAP which is a no trade zone. For an
ideal trading opportunity, we have to wait for either of strike price breaking
VWAP.

Call VWAP

Put VWAP
6) Took a PE trade, 3600 qty as price is breaking VWAP and hourly candle is
also turning Eno.

Hourly candle

Entry

Reduced 1800 qty

Reduced 600 qty at 2:11.

ICICI bank chart
HDFC bank chart

Added 1200 qty

Reduced 1600 qty

Added 2400 qty

 Reduced 800 qty

Added 800 qty

Reduced 2400 qty at 2:22.

Head and shoulder pattern

Added 800 qty

 Added 800 qty

Reduced 1600 qty

44200 Put writers are shifting downside which is sign of weak Put writers.

Exited all

Profit

**************************************************************
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 mention 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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Momentum Trading with Vijay Thakare

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