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.