Trade setup for the day


Yesterday was a huge roller coaster ride. Nifty opened with +200. Within half an hour huge selling came and nifty went to red. It was -70. It looked like Nirmala sitaraman measures had no effect on the market. But things then changed. The markets started inching upwards and by the end of the day banknifty gained around 1000 points and nifty gained 200+ points. I don't remember the last time I saw this kind of intraday rally. The major pull back came from H2B2.
Yesterday RBI announced that they would be giving 1.48 lk cr to the government which is the unpaid dividend.
Trade talks in G7 give a boost to the US and European markets

MY TRADES

  1. When I saw open-high in the nifty. I sold a few lots of nifty futures. I covered after I got 50 points. I never expected such a rally day.
  2. I had to take cover in some of the positions and did some counter-strategies for them.
  3. The call spread which was done some days back is working perfectly.
INTERNATIONAL MARKET
  1. The G7 summit gave hopes to the trade talks between China and the US. 
  2. We saw Trump appreciate Xi in the summit. One day he tweets that China is their enemy. The US markets then fall badly. Then he calls China Xi as a good person and that he is ready to make a deal. The markets shoot 1%. This is absolutely crazy.
  3. Yesterday the US market gained more than a per cent as Trump showed positiveness with China.
  4. European markets also closed in the green.
  5. Today morning the Asian markets are also in the green. SGX suggest that we may break 11100 marks today.
FII AND DII DATA
  1. This is surprising for me. Even in such a bull day, the FII are still sellers. 
  2. FII sold for 752cr and DII bought for 1272cr.
  3. We need to keep a close eye on FII trades. Something may not be good.
CRUDE AND $
  1. Today crude is at $59 
  2. $ is now trading at 72. No wonder gold is so costly now.
  3. $ increasing is also not a good sign. 
Maybe we may not rally much after sometime. Today we will rally due to the major dividend by  RBI to govt. $ at 72 and FII selling is not giving me the confidence to go long.

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