Analysis and Trade Plan - 7 May 2019

  • Nifty and Bank Nifty have both formed a horizontal channel. 11550 is crucial for Nifty. 29450 is crucial for Bank Nifty.

  • We are into a sideways zone right now. Ideal thing is to stay out.

  • India Vix shot up by more than 10% yesterday. With elections conclusion approaching, it is expected to reach 30. I would rather like to be at sell side.

  • US China trade war is again the news now. We survived the gap yesterday. But are there chances that yesterdays gap might be filled? This is what I am thinking right now.

  • Technically we are sideways and consolidating. Date wise, shorts were added.

  • Call writing was more than put writing. Amount of call writing on Nifty was much higher as compared to Bank Nifty.

  • ICICI Bank results were out yesterday. ICICI Bank ADR is down 1%. It can have an impact on Bank Nifty opening today.

  • For this down move to sustain, we need huge call writing at 11600. Currently 11600 has a PCR of 1.42 which means more put writers are there than call writers and it can bounce from here. Same is with Bank Nifty 29700 strike so we need to be cautious unless rhetoric changes.

  • I am trading with a sideways to bearish bias right now.

  • Times are very tough right now. Unless we get out of this range, we are going to hit a lot of stoploss. Stay cautious and dont let losses run.

Here is the overall position:

3 May 2019 - 9 May 2019.xlsx


Rohit Katwal

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