Analysis and Trade Plan - 7 Aug 2019

• SGX Nifty is down by 45 points right now.

• Dow Jones closed 300 point up which could have been a short covering rally.

• Hang Seng and Nikkei are little down today.

• At 11:45 am RBI monetary announcement is scheduled. Volatility will kick in at that point. Post that premiums may crash.

• We witnessed short covering rally on Nifty and Bank Nifty yesterday.

• We are bearish on Daily and 2 hourly charts. 30 minutes chart turned sideways.

• Nifty witnessed some put writing as 10800 proved to be a major support.

• FIIs were net seller yesterday also for 2100 crore but DIIs went in for buying of 2290 crores.

• Bank Nifty witnessed aggressive put writing and call unwinding on some counters.

• Sustenance is the key. Key levels to watch out for are 11020 - 10900 and 28150 - 27750. Outside these levels we can witness some rally.

• Next two days are crucial for further direction to market.

Rohit Katwal