Analysis and Trade Plan - 24 June 2019

• On Thursday, long positions were added to Bank Nifty, but on Friday we came into severe selling pressure because of Iran shooting down US drone.

• Technically, Nifty and Bank Nifty on daily and intraday charts is in sideways territory.

• Future data is inconclusive right now. There was long buildup on Thursday but move on Friday subdued it.

• PCR for Nifty and Bank Nifty is at 1.08 and 1.09 respectively but if one closely looks at Option data then there was significant call writing for both the indices.

• Mike Pompeo visit to India ahead of meeting with Trump is hopeful of easing some tensions. Analysing the comments of American Diplomats, it is speculated that America wants a deal badly with China at G-20 summit. So there is a hope that there might be some positive news coming.

• Amid US-Iran tensions, crude oil shot up above $65 and INR is trading at ₹69.61 which is not a worry right now. Any flare up to ₹70 levels for both is harmful for Indian Economy as it escalates fiscal deficit.

• When Nifty crossed 11800 and Bank Nifty crossed 30700, I was pretty sure that we have changed the trend but it failed to sustain.

• I hit a single bullish stoploss on Friday and then went long again as price was resisting downside.

• Looking at SGX Nifty right now, we may open a little up. My positions yesterday are doing fine and I will cover my stoploss.

• On the upside, I am looking at 11850 and 30800 on Nifty and Bank Nifty respectively. Failure to cross, I am looking at crucial support at 11600 and 30500/30200.

• If we again face resistance to move up today, then I will be doing strangles.

Rohit Katwal

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