Analysis and Trade Plan - 25 February 2019
There is some ease around the US-China trade talks which might keep markets positive.
SGX Nifty is up 15 points and so does the other markets.
Crude Oil is inching higher everyday, but is in safe zone for now. Any sharp spike in upper direction which is possible may hit panic nerve.
Rupee is stable and sideways.
On Friday, despite fall in Bank Nifty and sideways movement in Nifty, India Vix fell 3.75% which is good. It is below 16 level again.
Overall trend on Nifty is sideways and bullish on 30 minute charts. Even when it is sideways, we have hit the bottom and may test highs.
Max Pain for Nifty has moved from 10700 to 10800 and steady. PCR at 1.09 is stable and sideways for now. There are more chances of bullish movement.
For Bank Nifty, overall trend is sideways to bearish. Friday's fall was attributed to Kotak Bank and with that too, the fall was not that great. I am hoping for little upward movement today.
Recent high of 27053 is to be keenly watch. It will be a very good reversal point for my positions. On the other hand, 26800 can signal trend continuation.
I am currently holding 27400, 27500 calls which have already lost much of the premium. Unless Bank Nifty opens with huge gap-up, these should remain fine and I may even book profit on these.
I am also holding 26600 puts and may come in danger with huge gap-down. For normal to mild gap-down, I may be safe. If I feel like a reversal is coming, I might exit calls and add some bull put spread. 26940 will be very good point to consider going long.
I am currently trading with sideways to bullish. Haven't made up my mind yet. Next positions might depend on how the market unfolds today.