Daily trade setup for 20th may 2019

  1. This week will be very volatile as we have a major event.
  2. Yesterday exit polls came and NDA is expected to win with a clear majority.
  3. A stable government is always good for a stronger economy.
  4. Today morning SGX is already up by 250 points. Major Asian is also in red.
  5. On Friday, Nasdaq was down by 1%. Europe also closed in the red. Now for this week we already have a lot of domestic news. So these things may not matter unless anything serious should happen.
  6. On Friday, FII sold 1057 cr and DII bought for 1809 cr. FII is still on the selling spree. The exit polls may turn their sentiments too.
  7. I had a bullish view on the market due to election results. I am currently carrying Banknifty, Nifty in may futures. I have used options to hedge these.
  8. On Friday, I executed the below strategy
    1. 11500pe *  -1
    2. 11300pe *  +2
    3. 11300ce * -1
    4. 11500ce * +2
    5. 12400ce * -5
    6. 10500pe * -5

9. Today HPCL, BPCL, Tata motors will be coming with results. But this week these are all just icing on the cake.
10. My advice for new players is to just sit back and watch the fun. Entering now may be dangerous.
11. The more you hate Modi, the more you think of Modi. The more you think of Modi, the more you talk of Modi. The more you talk of Modi, the more margin Modi wins by.