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

• 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

• 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.

Rohit Katwal