Analysis and Trade Plan - 3 September 2019

  • Till the time we are stuck between 11170-10800 and 28200-27000, we are stuck in a range bound market. Hence my decision to sell 28400 Call and 26400 Put on Friday.

  • Nifty and Bank Nifty witnessed short covering rally on Friday.

  • Since we are forming a channel, there will be a lot of false signal right now.

  • Max Pain is steady at 11000 and 27500 for quite sometime now and PCR is hovering near 1 citing sideways direction for now.

  • Max OI on Nifty is between 10900 - 11200. For Bank Nifty, it is at 27000 to 28000.

  • Put OI change in Nifty is double the amount of calls written. For Bank Nifty, slightly more calls were written compared to puts.

  • On monthly expiry, 10800 added 7 lakh OI on put side which will act as a major support. But if this level is gone then we can look for further downside.

  • For Nifty, I am looking at an upper level of 11130-11150 and lower level of 10870. For Bank Nifty I am looking at 28000-28200 for upside and 27100 for downside. Until then, I am sideways.

  • Global cues are not at all good.

  • Auto Sales slipped further in August 2019.

  • Manufacturing further slowed.

  • GDP came at 5% for the latest quarter.

  • US-China trade war went as expected with tariffs coming in effect from Sunday.

  • SGX Nifty dropped by 100 point and is trading at around 10945 levels. We can start negative but bounce can be there post opening.

  • Rupee is getting weakened slowly on daily charts.

  • I think we will form a base around these levels. But if this channel is broken to downside, then we are in extended bear market.

  • I am trading with sideways bias.

Rohit Katwal

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