Analysis and Trade Plan - 17 September 2019

  • Dow Jones closed negative yesterday.

  • Most of the Asian markets are trading down.

  • Crude Oil is the culprit and is trading around $68 which is way above India's comfort level.

  • SGX Nifty is little down by 16 points hinting at a negative opening for Indian Markets.

  • HDFC Bank, Infy and ICICIBank ADR are also trading lower.

  • Rupee weakened to 71.58 today.

  • FII's were again net seller to the tune of 750 crore yesterday.

  • 11125 is proving to be a crucial resistance in this market.

Nifty

  • Massive shorts were added to Nifty futures yesterday.

  • Max Pain moved to 11000 and PCR to 0.99 hinting a sideways bias.

  • 11000 strike shed a lot of puts yesterday. while calls of 11000, 11050, 11100 added a lot of OI.

  • Collectively, OI change in Calls was approximately 3.6 million.

  • On monthly expiry also 11000, 11100, 11200 witnessed call writing with total call OI change of 1.3 million.

Bank Nifty

  • Bank Nifty witnessed long unwinding.

  • Pain is steady at 27900 with PCR at 0.89 hinting at sideways bias.

  • From 28000-28800, call writing was there. While 28000 to 28300 witnessed put unwinding.

  • Collectively 1.8 million contracts were added on call side.

On Friday, it looked like we were getting bullish, but things have again changed. We might remain sideways to bearish in short term.


Rohit Katwal

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