Analysis and Trade Plan - 1 July 2019

• I am expecting a sideways market action this week due to budget on 5th July 2019.

• Nifty Future witnessed short buildup on Friday while speculation was not visible on Bank Nifty futures.

• Technically, we are bullish as long as gap of exit polls sustain, but everyday we are trading in a sideways territory. Any direction to the market will come only when we have broken out of the channel that formed post elections.

• On Options front, we are bearish. There was call writing on 11900, while put writing was not substantive in Nifty. Bank Nifty also witnessed more call writing compared to put writing.

• Max pain has started to move up, but is at crucial point where it can surrender once again or break to the upside.

• Movement of Crude Oil and Rupee will not have much effect on market as crude is moving up but rupee is gaining strength.

• I am getting mixed signals about the market so it is not wise to jumpin right now and take a trade. I would give market some more time to develop and then decide what trade can be taken. Probably, given the sideways nature of market, I might end up with Strangles or Calendar Trades.

Rohit Katwal