Trade setup for 10th july


  1. Yesterday was a highly volatile session.
  2. When the tax on FPI was increased on the budget market fell by 300 points. Yesterday markets fell close to 100 points and closed in the flat territory.
  3. Nifty closed with -2 points and banknkifty closed with -200 points.
  4. The bajaj twins bounced back after massive fall day before yesterday. Bajaj finance recovered 5%.
  5. The earnings season has kicked in. TCS results came yesterday and it was below market expectation. I don't expect much fall from here as it has corrected 10%
  6. The good part is that the big boy reliance has started to move which is good.
  7. Autos are performing badly. Stay away from auto stocks as nothing is going their way.
  8. Will not even think of autos until something extraordinary thing happens.
MY TRADES
  1. I have sold 11500 straddle august series. Have bought puts to protect on the lower side.
  2. Covered some of the puts which I had bought before in wonderful profit. 
  3. My portfolio which was bleeding the day before yesterday is now looking somewhat ok. The move in reliance, Baj finance recovered some of the portfolio loss.
  4. Let's see if there is any trade in TCS. Will sell puts if it falls drastically. Will take delivery if it comes to my strike. I have not decided on the strike. Will decide in today's second half. Depends on the gap up / gap down of today
INTERNATIONAL MARKETS
  1. The US closes in the mix. Nasdaq gained almost 0.45% and dow closes in mild red.
  2. Europe closed in mild red except DAX which closed by losing -0.87%
  3. Today morning, Asia is in the flat territory. SGX suggests that we may open in a flat zone.
FII and DII data
  1. FII are selling continuously from 6 days. Yesterday they sold for 674cr and DII bought for 710 cr
  2. FII selling is a concern for the bulls. 
CRUDE AND $
  1. Crude is now inching towards $65 per barrel. This is bad for oil importing countries like India.
  2. $ is at 68.54.
  3. $ may continue to fall and IT and pharma will feel the heat.

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