Analysis and Trade Plan - 21 June 2019

  • Iran shot down an US drone escalating tensions which further pushed crude oil higher.

  • Nifty witnessed a short covering rally yesterday where lot of future contracts were shed.

  • Bank Nifty on the other hand witnessed long buildup.

  • Max pain for Nifty and Bank Nifty started to move up.

  • PCR at 1.34 and 1.26 again came into bullish zone.

  • We also witnessed put writing and call unwinding for last week of June, 2019 suggesting we may move higher in coming days.

  • I was closely looking at 30100 and 11600 to be violated. These were the gap areas post elections 2019 (Exit Polls).

  • Point that market turned exactly from the gap gives credibility that we are still in a bull run.

  • Although I would not draw conclusions just now and would like to give time till today evening to draw any meaningful conclusion from the market.

  • Budget of new government is scheduled on 5th July 2019 after which market will make or break a new trend.

  • Till that, I am trading with sideways to bullish bias.

Rohit Katwal

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