Analysis and Trade Plan - 6 February 2019

  • SGX Nifty is again above 11000. It has sustained above 11000 from yesterday, so I think we will break to the upside tomorrow.

  • RBI Bi Monthly Policy meet is underway and will be declared on Thursday by 11:30 am. I will be out of market long before that.

  • There are equal chances that it can be a failed breakout.

  • Nifty and Bank Nifty witnessed long buildup yesterday.

  • Max pain for Nifty is still at 10900. Max pain for Bank Nifty is moving up at 27200.

  • PCR is bullish for Nifty at 1.43 and at .91 sideways for Bank Nifty. Since Bank Nifty is weekly contract, it changes from sideways to bullish very fast, so we have to be cautious.

  • There was not much activity on option writing. It is suggesting sideways movement right now.

  • We need a strong breakout to move further higher.

  • In case of momentum my bear call spread of 27600, 27900 will be in trouble which I will have to manage.

  • I am trading with bullish bias.

Rohit Katwal

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