Analysis and Trade Plan - 28 May 2019
Net long positions were added to Nifty futures. 12000 seems to be immediate hurdle. 10900 is immediate support. I am looking at upper level at 11960 and downside level at 11850 crucial to watch.
Option data is bullish. Put writing is visible on Nifty 11800 and 11900 strikes. We have a huge hurdle at 12000 strike with total OI of 37 Lakhs. This can be the point where we might expire this week.
PCR is hovering at 1 which is not convincing. One has to be cautious right now.
Net long were added to Bank Nifty. Good thing is that when Nifty is lacking, Bank Nifty is leading from the front and carrying it forward.
I am bullish on Bank Nifty and i think it can still take Nifty further.
PCR at 1.40 is highly bullish and max pain is constantly moving up. There is little downside risk right now.
Crude Oil shot up to $70 but I dont think it will pose any immediate risk to our market since rupee is strong.
I am trading with bullish to sideways bias and will look at calendar or strangle spreads.
Here are my open positions: