Analysis and Trade Plan - 3 September 2019
Till the time we are stuck between 11170-10800 and 28200-27000, we are stuck in a range bound market. Hence my decision to sell 28400 Call and 26400 Put on Friday.
Nifty and Bank Nifty witnessed short covering rally on Friday.
Since we are forming a channel, there will be a lot of false signal right now.
Max Pain is steady at 11000 and 27500 for quite sometime now and PCR is hovering near 1 citing sideways direction for now.
Max OI on Nifty is between 10900 - 11200. For Bank Nifty, it is at 27000 to 28000.
Put OI change in Nifty is double the amount of calls written. For Bank Nifty, slightly more calls were written compared to puts.
On monthly expiry, 10800 added 7 lakh OI on put side which will act as a major support. But if this level is gone then we can look for further downside.
For Nifty, I am looking at an upper level of 11130-11150 and lower level of 10870. For Bank Nifty I am looking at 28000-28200 for upside and 27100 for downside. Until then, I am sideways.
Global cues are not at all good.
Auto Sales slipped further in August 2019.
Manufacturing further slowed.
GDP came at 5% for the latest quarter.
US-China trade war went as expected with tariffs coming in effect from Sunday.
SGX Nifty dropped by 100 point and is trading at around 10945 levels. We can start negative but bounce can be there post opening.
Rupee is getting weakened slowly on daily charts.
I think we will form a base around these levels. But if this channel is broken to downside, then we are in extended bear market.
I am trading with sideways bias.