Analysis and Game Plan - 29 October 2018
Markets are at multi week low. Its not at point to go short or long either.
SGX Nifty is up 60 points. It was up 100 points.
I am also monitoring the 14 days average of Nifty Future VWAP. It is at 10335. I will assume that we need to bounce post 10350 for any uptrend right now.
Interestingly, my 30 bar channel breakout is also at 10300.
Future OI indicates short being added.
Max Pain moved down to 10400. PCR is high at 1.30, but it came down from 1.34.
India Vix agan rose to 19.23.
Call and Put writing is normal right now and not much speculation is there.
Call writing was seen at 10100/10400/10500/10600/10700.
Put writing was seen at 10000/9800/9600/9500.
Technically, we are bearish on daily, 2 hourly and 30 minutes chart.
On Bank Nifty, we can be on journey towards 24000/23500.
Technical Charts are weak.
Future OI showed short position in bank nifty.
Max Pain is down to 24700 and PCR is down to 0.41.
From 24700 to 25500, there was only call writing. There was some put writing at 24000.
Overall trend is weak.
Cannot rule out a bouce back.
24700 to 24900 and even 25000 looks good for taking short in bank nifty.
10200 to 10300 looks good for taking short in nifty.
Projections are for today. Data will change tomorrow and so does the projection.
Game Plan -
Not planning to trade till 12:00 pm.
I will add some shorts below 24340 as it will be break of a recent low and it must sustain below 24300.
Any break of 24800 may also be a double bottom formation and I would add some longs.
I will have to monitor nifty also. Nifty has already brokern the low that would have formed a double bottom.
It means that with the fall in nifty, bank nifty is out performing.
If things didnt seem clearn, I might not take a trade at all.