Daily trade setup for 7th june

  1. Yesterday was a drastic fall. 
  2. RBI monetary policy did add fuel to the fire. 
  3. RBI cut the rate by 25bps and in the second half markets tumbled.
  4. Banknifty fell 700 points and nifty back below 12000
  5. I anticipated that 12000 was a strong resistance zone. So I was not in a hurry to enter trades when it crossed 12000. I had thought of going longs if 12000 was maintained after RBI policy. 
  6. Yes bank, indusind bank are in pressure due to the DHFL exposure.
  7. Trump says he is planning a tariff of 325 billion dollars on China after G20 meet.
  8. Auto sector is in bad shape as BS 6 will be mandated from April 2020. So I will better stay away from these stocks.

My trades

  1. Yesterday I made 40 thousand profit in expiry trading.
  2. I had yes bank and reliance in the cash market which is in deep loss now. But that is ok. The puts which I bought is doing well. But the overall trade is still in a loss. Will exit if this downfall continues.
  3. The nifty spreads which I had is performing well. Planning to add more legs to this trade to make the base strong.
International market
  1. Again US closed in green. Nasdaq was up by +0.53%.
  2. Europe was mixed. FTSE closed in green but CAC and DAX closed in the red.
  3. Today morning Asia in green except China. SGX indicates that the start could be mildly negative.
Crude and $
  1. After falling for many days, OIL is now recovering.
  2. $ is now at 69.26.
FII and DII data
  1. FII have sold 1448 cr and DII sold 650cr.
  2. Now FII and DII have started selling which suggests that the downfall is not over yet. But these things may reverse overnight.