Trade setup for Saturday 01, February 2020

All you need to know as a trader or Investor

Today is the big day of stock market as you all know that today is Budget day. On Budget day in last 10 years, the equity benchmark has fallen or risen over 1 per cent in many occasions.

We have seen high selling pressure in equity market FII's sold over 4k cr in cash.

Sensex closed 190 points, lower at 40,723 while Nifty lose 73 points and closed at 11962.

SGX nifty closed lower by 44 points on 31 January which shows negative opening for nifty.

Option Analysis:

Maximum open interest on call side at 12500 of 18.33 lakh contracts.

Significant call writing was seen at the 12,000 strike price.

Call unwinding was seen at 11500 strike price.

Maximum open interest on put side at 12000 strike price of 28.34 lakh.

Put writing was seen at the 12,000 strike price 2.75 lakh new contracts gets added.

Put unwinding was seen at the 12500 strike price.

What to look for:

Today's market move will be based on budget announcement so we have to be very care full making any trade decision, premium on option buying slight higher than usual due to high volatility. It is advisable not to buy any OTM Call or Put today because budget will decide today's movement and buying any OTM option can lead you in paid premium loss at a very fast pace. However look for technical and can rely on.

If you are new to stock market please avoid trading today. Trading on any big events require high attention and proper money management.

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.