Analysis and Trade Plan - 15 October 2019
SGX Nifty is up by 45 points, so we might have a little gapup.
Dow Jones was sideways as US-China trade deal is just speculation and everyone knows that Trump can back track any time.
Hindustan Unilever delivered results better than estimates. With 2% weightage in Nifty, it might have little impact on positive momentum. Well, if it moves up after results.
Crude and INR are stable for now.
FIIs were net buyers yesterday and DIIs were net sellers. But still we had a positive cash flow overall.
Nifty Futures witnessed short covering yesterday.
We are sideways on Daily and 2 hourly charts. We are forming Higher High, Higher lows pattern. For half an hour, we broke out of the triangle and again entered a channel, so todays move will be crucial.
Max Pain is steady at 11300 and pain at 0.99 is neutral hitning at a sideways market.
Max calls are written at 11400 and max puts at 11300 and this has become a defending point for market. Yesterday, put writing was more but we need followup action else it may fizzle.
Monthly option data is also mixed. Looks like market is waiting for a trigger.
I have stopped tracking Bank Nifty for some time now. Average range of Bank Nifty is more than 900 points for last 14 days which makes it a risky proposition. Nifty is still stable. I am looking for levels of 11400 to upside and 11280 for downside.
If market goes higher, I might assess the trend for my positions. If market starts to fall than I want to firefight the situation.