Analysis - 26 October 2018
I cannot sense a trend or a direction right now in markets. Charts and data is all messy and it is too early to say.
Dow Jones ganed 1.63% yesterday.
With the kind of fall Crude Oil had, we are not going to be worried due to it for short time. Rupee has also stabilized at these levels.
Result of ITC and ICICI Bank are scheduled today.
We have been talking of market bottoming out at 10000, but we havent touched it yet. I have a feeling we might touch it before moving up. Its not time for bottom fishing yet.
When much of the movement is in gapdown or gapup, it is hard to predict whether marketis bullish or bearish even with data and technical analysis.
Max Pain for Nifty November month is at 10500 and pcr at 1.34 which is bullish, but it is early to see it as a sign of reversal.
Bank Nifty PCR is again touching 0.51. I cannot rule out a strong bounce in such conditions.
I am expecting a little gap down opening.
Markets are bearish but cannot rule out a bounce.
Game Plan -
Its wait and watch time.
If bank nifty touchs 24400 today, then I might add 2 lots of bull put spread. I am hoping for a bounce back and only targetting 42 to 46 points.
Note - Lot Size of Bank Nifty is decreased to 20 with margin requirement of approximately 37,000/-. This is going to affect the profits.