Trade setup for the day

  1. Today will be the day of the bulls. All thanks to Nirmala sitaraman. On Friday, she announced that FPI surcharge which was introduced in the budget will be removed. Rs 70000 cr will be used for bank recapitalization.
  2. I feel that the govt should be responsible when making such a huge change. On the budget, they announced that FPI will be taxed and now they say that they were joking and remove that. This does not give much confidence in the investor community. 
  3. The global environment is not as good as the trade wars between China and the US is getting intensified. Trump who was calling China's president as a friend has now called him as an enemy.


  1. There was uncertainty in the finance minister press meet. So I have closed most of my positions as I prefer to stay away from uncertainties.
  2. Now things are pretty much clear and I will take fresh trades. 
  3. Will do call spreads in nifty and banknifty. 
  4. Will buy HDFC bank, BajFinance in cash and also will buy puts to hedge that.
  1. International markets are bad. On Friday, the US markets fell badly as Trump gets angry on China. Nasdaq fell 3% and dow fell more than 2.5%
  2. European markets also fell more than 1% on Friday.
  3. Today morning the Asian markets are in deep red. Nikkei, hangseng are all down by more than 2%.
  4. SGX is in green due to the domestic boost which we have.
  1. Crude is now at $58.70 per barrel.
  2. $ is now at 71.66. 


  1. FII ave sold for 1737cr and DII  bought for 1548cr.
  2. Today will be an important day. We need to see if FII will turn out to be sellers today as well or not.