Daily trade setup for 14th may

  1. Trade wars escalate. Now China escalates by adding fuel to the fire. 
  2. China imposes a tariff on $60 billion US goods.
  3. Trump and Xi are planning to meet next month at G20 summit.
  4. Nasdaq went for a toss yesterday. It was down 3.5% and DOW was down by 2.5%
  5. Europe was also under pressure yesterday. Most of the European indices closed in deep red with almost 2% down.
  6. Today Asia is also in pressure. Nikkei, hang sang are down more by 1%.. But now all are recovering and Kospi is in green
  7. SGX is 50 points down.
  8. It is a no brainer that even we will be under pressure but the fall may not be huge.
  9. We are falling from 9 consecutive days now.
  10. Nifty broke 100DMA. Now people are looking for 200 DMA 
  11. 11000 is a very crucial level as it has the highest OI. 200 DMA is a crucial technical level. 
  12. Indian pharma is in pressure as the US fines much pharma for inflating the drug prices.
  13. I have a strong gut feeling that it may not be broken. But I may be wrong.
  14. Because of the election, I feel that the recovery might be strong if short covering happens.
  15. VIX at 28. It may cross 30 before 23may. So buying options will not be a good idea as the premiums are skyrocketed.
  16. I had a mild bullish view and had positions. Now its in slight loss. Will do counter trades to protect them. If 200 DMA is broken then I will prefer to close all positions and take a minor loss.
  17. Etihad has agreed to invest 1700 cr. I prefer to stay away from these kinds of stock. One day you get a piece of good news and it rallies 10% and another day it falls 10% due to a piece of bad news.
  18. FII sold 1057cr and DII bought 1056 cr
  19. Nestley, pidilite and zee are coming with its results today.