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: