Analysis and Trade Plan - 26 July 2019
We are finally over with Juny, July 2019. These two expiries were the worst experies of all time.
Yesterday we witnessed one of the highest volatile market closing. Many professional option traders booked losses yesterday.
I started with a profit of ₹7,000/- then ₹16,000/- then ₹20,000/- and finally made ₹27,000/- to close the July 2019 at positive note. After June 2019 I was cautious not to book losses so I traded defensively. And slowly I increased the profits as they should be. We have to be patient with market. I am fine with less profit some month. But I am not fine with making losses unnecessarily.
August series has just started and we do not have much data to analyse right now.
Global markets are turning bearish right now. Dow jones closed 130 points down. SGX Nifty is also down by 20 points hinting at a negative opening.
Yesterdays fall was attributed to Reliance and Bajaj Finance. Bank Nifty was not s0 aggressively down.
Long term support for Nifty is at 11100 and Bank Nifty is at 28500. I hope these points will not be easily broken so it will be wise to trade in the range of 11400-11000 for Nifty and 29300-28500 for Bank Nifty.
We do not have much data at our disposal right now to assume what will happen, so we will have to wait and see for 1 or 2 days that how market develops.
In such a scenario, ratios or calendars will be optimal strategy.