Analysis and Trade Plan - 22 March 2019
I have been saying for so long that this rally has over stretched. There needs to be some consolidation going forward.
Technically I think Bank Nifty can touch 29650 going forward and may even break that and take support near 29500 before moving higher. Broader trend is bullish and we may enter consolidation on lower time frame.
Nifty can also touch 11450 before moving higher.
Max Pain and PCR have been constantly bullish for some time. On Wednesday though, pain shifted to lower levels for 28 March expiry.
Both Nifty and Bank Nifty witnessed long unwinding in futures.
India Vix moving above 16 despite market going up is a sign that we may consolidate a bit.
While, data for Nifty is bullish, the kind of fall it just witnessed over 30 minute candle suggests even 11400 levels can be breached.
Rupee has been gaining strength every day and it is good for Indian Economy.
Crude Oil is also stable.
Sensing overall bullishness and consolidation on lower time frame, I will initiate straddle today.