Analysis and Trade Plan - 6 May 2019

• We are going to see the effects of Trump Tweets today. On Saturday, we were getting news that a trade deal can be reached by the end of week. Today, we are seeing a tweet from Trump threatening to raise tariffs again on China. All the markets in Asia are down currently.

• SGX Nifty is down by 60 points. I am looking at a negative opening.

• Although Crude Oil has slipped below $69 and Rupee has started gaining strength, current sentiment created by US and China is going to rattle the markets.

• ICICI Bank is going to announce results today. It can have an impact on the movement of Bank Nifty.

• On Friday, we had more put writing compared to call writing on Bank Nifty, but overall PCR is below 1 which is bearish. Even max pain is steady for Bank Nifty.

• Similarly, On Nifty, call writing was more compared to put writing. PCR is below 1 and max pain is steady at 11700.

• Technically on daily charts we have a bearish pattern and we formed a bullish pattern on 30 minutes chart. But news of US China trade conflict, it is safe to assume that bearish pattern will dominate the market.

• Bank Nifty was getting bullish, but we will have to monitor today for further direction.

• As far as data is concerned along with Technical, we are into a sideways to bearish phase for now.

• Somewhere market has also discounted that BJP will not get a clear majority like it hoped so at the start of this bull run.

• I am currently into two bull put spreads of Nifty and Bank Nifty. I will have to exit both the positions in adverse conditions. I think market is going to be highly volatile and sideways in the coming days.

Here is the overall position:

3 May 2019 - 9 May 2019.xlsx

Rohit Katwal

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