Analysis and Trade Plan - 29 January 2019

• Fall in Nifty was due to financial and banking companies.

• ICICI Bank, Indus Ind Bank, Axis Bank, Yes Bank dragged Bank Nifty.

• Tomorrow we have results of Axis Bank, day after that ICICI Bank which is going to cause volatility.

Bank Nifty

• We are in the last week of January, so we do not know whether futures are being rolled over or not.

• Pain has started to move down and is at 27000 with PCR at 0.70, we are looking at bearish sentiment for few days.

• OTM PCR is at 0.40 which is also a bearish sign.

• I will not be surprised if we bounce a little given the sell-off of today. I will sell more bear call spreads or call calendars.

• Currently there are no levels. We need to go with the flow.

Nifty

• Fresh short were created on Nifty.

• Pain is steady at 10800 and PCR is bearish.

• OTM PCR is at 0.53 right now.

• I have a feeling that market will expire between 10700-10800.

Could not update blog due to some family commitments. Looks like I will take some put calendars today.

Existing positions are all going fine.

Rohit Katwal