Trade setup for 16th july


  1. Yesterday nifty closed in green and banknifty was in green.
  2. We are in a consolidation phase. We will be in the range for some more time.
  3. This is earning season. TCS, Infy result did not provide many triggers, We need to see what will give triggers.
  4. Yesterday Infy moved 7% as results were better than estimation. We had got this hint after seeing ADR. Now Infy is valued more than TCS for the short term. 
  5. The nifty futures are trading in a discount to spot.
  6. India vix is now at 12. This means that markets are not expecting much volatility in the markets.
  7. This is usually considered as a bullish sign but there is an economy slowdown, so I believe that we may consolidate for more time and not shoot suddenly.
MY TRADES
  1. I initiated the call spread in Infy. 
  2. Also bought puts to counter the call which was bought.
  3. For intraday, I had sold banknifty futures. The volumes were small and I closed in good profit yesterday.
INTERNATIONAL MARKET
  1. Nothing much happening in the world markets as well. The US markets were flat.
  2. The European markets were flat.
  3. Today morning the Asian markets are also flat.
  4. Not sure when the next trigger will come in the markets. Is this silence a signal of a big tsunami???
FII AND DII DATA
  1. FII sold 216 cr and DII bought 591cr.
  2. FII are continuously selling. This is a bit disturbing.
CRUDE and $
  1. Crude is now at 66.59. This is good for the Indian economy.
  2. $ is now trading at 68.53 against INR.
The options premiums are low as the vega factor is less. There will be some trigger in short time. The longer the consolidation, greater will be the effect of the trigger. I will wait for some time and as I feel that the consolidation phase is coming to an end, I will enter a long strangle(buy ce and pe) as the premiums are low. Any slight trigger should give me a good profit. 

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