Trade setup for the day

  1. Yesterday we had a volatile day as we had an event.
  2. RBI came out with their monetary policy. They reduced the rate of interest by 35bps.
  3. So now the rates are at their 9 year low. 
  4. But markets are in no mood to rise. It is a clear tug of war between FII and DII(govt backed).
  5. The government does not want the market to fall but the FII's are not stopping till they get a surcharge discount from govt. 
  6. Yesterday the markets were swinging from green to red and red to green. And then the policy came out and it was a one-sided move i.e on the downside.
  1. Executed an event-based trade yesterday. Had sold ATM calls in nifty and banknifty after the markets took the downside. Closed the trade when markets were almost at day's low. Was able to make a good profit.
  2. Also bought calls for today's expiry trade. I am expecting some short covering today.
  1. The FII are in no mood to buy. But the FII selling has gone down to some extent yesterday. 
  2. Yesterday the FII sold for 383cr and DII bought for 531cr
  1. Crude is now at a low point and it is at $57.86
  2. $ is now at 70.88. 
  3. In the good market, this was wonderful news but now it is not taken positively.
  1. Yesterday the US markets closed in the green. Europe also closed in the green.
  2. Today morning the Asian markets are also in the green.
  3. SGX suggests that we may open in flat territory.
  1. The nifty has the highest OI at 11000 and 10800 
  2. The banknifty has the highest OI at 28000 and 27500.
  3. The maxpain for nifty is at 10900 and 27800 for nifty and banknifty respectively.
  4. Nifty may range from 10900 to 11000 and banknifty may range from 27500 to 28000.