Daily trade setup for 28th may 2019

  1. Yesterday was a superb rally in the markets. Short covering came as all gave a thumbs up for the MODI 2.0
  2. Nifty rose 80 points and banknifty rose 400+ points. Nowadays banknifty movement of 400 points has become a norm. 
  3. Trump is in Japan for trade talks. The outcome will be observed by the world. 
  4. Australian iron ore prices soar so the metal companies may benefit. So companies like Vedanta, Tata steel will be in focus.
  5. Yesterday US and Europe closed in the mild flat to green territory.
  6. Today morning Asia is also in the flat zone. 
  7. SGX indicates a flat opening. 
  8. There was a lot of movement in nifty in the month of April and May. In april, it fell close to 800 points and in may it rises close to 800 points
  9. So there will be consolidation in nifty for some time. The market will be sideways for some time till they get the next big trigger.
  10. India Vix has cooled off. 
  11. Crude and dollar are falling which is good for India. However, IT may feel a bit of pinch. 
  12. The overall sentiment in the world market is that the economy is slowing down. So, if the world market falls then we may not sustain to high levels.
  13. Yesterday FII bought for 1215cr and DII sold for 327cr
  14. I feel that 12000 may act as a strong resistance and may not be crossed very easily. So we may beat around that for some time. However, I feel that it will be broken in June.
  15. My account is being migrated to another broker. So had to forcefully close all positions. So will not be having any positions in FnO for this week. Not sure if I will be able to play the expiry this week. 
  16. In equity, I have Reliance, Bajaj finance, Yes bank and sun pharma in huge quantities.