Analysis and Trade Plan - 27 March 2019
Even if we remain little sideways to bearish (little), then also I don't need to take a trade for today. If some option is near 0, then I might replace it with a better priced option.
I mentioned yesterday, that overall trend is up and we may become bullish any time. On 15 minute charts, I got a broken reversal which I immediately took. It tested my patience when Bank Nifty came 100 points down, but I was convinced and for safe side kept hedging it. Mark to Mark hovered near 12,000 loss at one time, but when I entered the values in my excel sheet, I wasn't in that much loss. So I waited and got rewarded. Once market reversed, I removed the hedge to save the cost.
Recessions don't come with a news but news does create a panic and that was what happened 2 days back. Dow jones is sideways right now and 1.7% drop just created a trap for bears.
11400 will act as a major support this expiry. Follow Up buying tomorrow or rally is necessary to break past the resistance of 11500. Currently 11500 has PCR of .71 which means it is a resistance. Call Unwinding was huge on 11600 which means 11500 can be broken today.
Technically there are also chances for market to drift near 11430 which is not a cause for concern if the fall is limited towards it.
Bullish positions in futures were added to Nifty and Bank Nifty.
Call unwinding and put writing was clearly visible. We had a 700 point range in Bank Nifty today. Volumes were good according to it.
Crude Oil has been consolidating at current level for past many days. If it breaks to upside, then it can be a worrying point. But thats for later date.
INR is in comfortable range.
I am trading with bullish bias.
I will try not to exit my positions unless it is necessary to save them. I might hedge them since the cost will be lower due to expiry.
Here are the updated positions:-
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