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.

Rohit Katwal