Analysis and Trade Plan - 1 October 2019
Broader decline on Monday was caused by NBFC and Banking sector.
I was trading with a bearish bias at start, but 11400 took massive support and Nifty moved up. I changed my direction because the broader trend on daily charts and 2 hourly charts is still up.
SGX Nifty is trading 20 points higher hinting at a positive opening for Indian Markets.
Dow Jones closed in positive territory.
RBI Monetary policy is scheduled on Friday and market may move up in the hopes of another rate cut. Also it can give market a little sideways movement till Thursday.
India vix fell below 16 yesterday.
Asian Markets are trading in green. Crude Oil and Rupee has stabilized.
Nifty futures witnessed short buildup.
11400 put and 11600 call witnessed major OI addition.
PCR at 0.75 is bearish. Immediate OTM PCR at 0.69 is also bearish.
Monthly OI is also bearish.
If 11540 on spot is not broken after opening, then I will clear my bullish positions and go short or sideways.
Bank Nifty futures also witnessed short buildup.
Max Pain came down and PCR at 0.49 is bearish.
Call writing was all around above 29500 strikes.
Puts were unwinded on all strikes.
Any upside rally can come above 30000 only. Till then it is short.
I dont have any position on Bank Nifty.
I will wait for opening. If we move up, then will close my positions in profit and will go short.