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.