Trade setup for expiry 25th july


  1. Yesterday was another blood bath day. At one point it looked that short covering would be back in the system but that did not happen.
  2. Finally nifty is below 11300 and banknifty below 29000.
  3. HDFC and HDFCBANK closed in the green and they held the banknifty and nifty.
  4. Bajaj twins, reliance, ICICI bank, Axis bank, Indusind all were in red and because of this nifty was not able to recover.
  5. Now the overall sentiment in the market is negative. 
  6. Markets are down for 5 consecutive days.
  7. Today is expiry and there is lot of shorts in the system. Will they be covered???
MY TRADES
  1. I had to close my yes bank, HDFCBank positions which I had executed during their results as yes bank is a part of the compulsory settlement.
  2. I added some short strangle in nifty and banknifty as I had some cash available. 
  3. At the end of the day today, I will be buying nifty and banknifty futures for the next month series. I believe that the markets are oversold.
INTERNATIONAL MARKET
  1. The US closed in green.
  2. The European markets were mixed as FTSE closed in red while DAX closed in green and CAC closed in the red.
  3. Today morning the Asian markets are in mild red and SGX suggests that we might open in mild green.
  4. We have our own issues so global factor may not have an effect on us. 
FII AND DII 
  1. Yesterday FII sold for 1393cr and DII bought for 2140cr
  2. In this month FII have sold around 12000 cr
  3. But the DII has bought more than FII have sold.
  4. But FII has an edge because they can do many things in the derivative market which the DII and not allowed to do.
EXPIRY
  1. Today is monthly expiry and expect a lot of roller coaster ride today
  2. 11400ce has highest OI and 11300pe(ITM) has highest OI.
  3. banknifty may trade between 28700 to 29200
  4. Nifty may trade above 11300.
  5. Maxpain for nifty is 11300 and for banknifty it is 29100.

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