Analysis and Trade Plan - 10 Jun 2019
On Friday, Dow Jones shot up by 1%. SGX Nifty shot up by 70 points. Right now SGX nifty is up 60 points hinting at a positive start for Indian market.
Looking at Nifty Futures, I cannot see much speculation right now. It seems market makers are just making up their mind right now. Significant long exist in Bank Nifty Futures.
Max Pain for Nifty is at 11850 and making a pivot low. PCR is also at .67 which is not a good sign. For Bank Nifty max pain is steady at 3100 and PCR rose to .77. I think we are into a consolidation mode now for some time.
India Vix cooled to 14.80 levels which is a good omen for bulls for now.
Amount of Put Writing on Nifty and Bank Nifty was comparatively more but still not significant to cause a sudden rally to the upside.
On Saturday, Trump decided to defer sanctions on Mexico indefinitely and there are also news of removing Huawei from sanctions list. If such thing happens, there will be a sudden rally to the upside.
Asian Markets are trading up right now. Hang Seng is up 2%. Nikkei is up by 1%.
Any major news is on 5th July, when budget by new government is to be presented.
Crude Oil and INR are both at comfortable levels not posing any risk.
Only bad news is coming in from local NBFC Crisis i.e. DHFL and IL&FS, which I think will not affect Indian Market. It is already discounted when it occurred.
Here is the sheet of my open positions: