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.