Analysis and Trade Plan - 2 July 2019
US China trade truce at G-20 summit helped markets yesterday. Talks with North Korea also is a positive step for now.
Protests have again started in Hong Kong against the extradition bill but its effect has not been seen on the asian markets.
Hang Seng is up by 1%.
SGX Nifty is little positive suggesting a normal opening for our markets.
Reliance has been under performing for last few weeks but the fall is not severe.
HDFC Bank made an all time high yesterday and that lifted the sentiment in Bank Nifty.
Crude Oil fell a little yesterday along with strengthening Rupee which is also good for Indian Markets.
Auto sales number came which is not good.
So broadly we don't have much good news coming. It is some big companies that are supporting the upmove right now.
We had a long buildup on Nifty and Bank Nifty yesterday.
Max Pain for Bank Nifty started moving up again, while Nifty's max pain is steady.
PCR for Bank Nifty at 1.20 is bullish. PCR for Nifty right now is sideways.
In Bank Nifty, there was call unwinding all the way and collective OI of 1.4 Million increased to the Put side.
In Nifty, while there was little call writing at 11900 and above strikes, put writing was visible but not significant.
While Bank Nifty on 30 minute chart is sluggish but rest of the time frames are hinting at bullish momentum along with data.
Above 11900, Nifty wiill also join the party.
So, I am a little sideways to bullish on Nifty and moderately bullish on Bank Nifty. Important levels for Nifty are 11900/11760. Important level for Bank Nifty are 31450-31500/31260.