Daily trade setup for 4th june

My trades

  1. I was mildly bearish by seeing the international market, but I was proved wrong. Markets moved fantastically yesterday.
  2. I created some of the call spreads which are in mild profit. 
  3. I bought 12300ce and sold 12500ce in the morning in the ratio 1:6
  4. Will buy nifty and banknifty futures if 12000 is held for this week.
  5. Will be shorting HDFC today. May also buy a few puts and calls as overnight hedges.
  6. RSI of nifty and banknifty is at 65. Also, keep an eye on this as well. Shorts may enter when it goes above 70 or 80.
International market

  1. Yesterday Nasdaq fell -1.6% but DJI was flat. The trade war negativity is still in place.
  2. European indices closed in the green yesterday as most of the indices closed with a gain of around +0.5%
  3. Today Asia is in red. SGX is down 40 points. We may open in the red. Need to wait and watch if 12000 will be held in this week.
  4. The FANG stocks fell due to some regulatory issues.
Crude and $

  1. Crude is falling day by day which is really good for emerging markets like India. There is also another analogy which states that fall in crude signifies slow growth in the economy. Whatever is the reason, people who trade in commodities would have made a wonderful profit in crude oil. I do not trade in commodities.
  2. $ also fell. It is now within 69.5. So IT and pharma will be in pressure if this fall continues.
FII and DII data
  1. Yesterday FII bought for 3068 cr and DII sold for 462 cr.
  2. After a long time, FII bought for such a huge quantity. 
  3. Fall in crude and $ is attracting FII to emerging markets.
  1. Tomorrow is a trading holiday. 
  2. Thursday is RBI monetary policy. So all weekly option premium would have factored in all these.