Analysis and Trade Plan - 26 June 2019

  • There are two possibilities from here on. First, we are going to have a pre budget rally. Second, it was a fake rally. In both the cases, I need to be sure before exiting on my sold calls.

  • Yesterday, last minute sell off eroded the value from sold calls and they came in breakeven.

  • Technically on daily and 2 hourly charts, we are sideways right now. 30 Minute chart of Nifty is sideways, but on Bank Nifty we have started to turn bullish. So it is time to be cautious with upper leg.

  • There was a lot of call unwinding and put writing on both the indices.

  • There was not much speculation on futures.

  • Pain has started to move up with PCR at 1.40 hinting bullishness.

  • Crude Oil shot up yesterday significantly but the rupee is stable.

  • Dow Jones declined from highs and SGX Nifty is trading 20 points lower which means I may get time to exit long positions.

  • Yesterday, to manage my sold 31100 calls, I bought 31000 calls which I later exited at 5 point loss when market fell.

  • I am trading with Bullish to sideways bias. For Nifty 11850 and 30850/30930 remain an important level for further upside.


Rohit Katwal


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