Trade setup for the day

Today is Teachers day. Happy teachers day to all my teachers who have given me immense knowledge in different ways. I don't want to take individual names as I had many gurus.

Coming to markets, one day the US says that China is its enemy. One day Trump says that President Xi is a good person. On September, he added tariffs to China. Now they have decided to have talks in October. The finance minister has decided to do something for the housing sectors. So there might be a hope rally. Today Reliance Jio is rolling out its fibre for the public. So there may be some positive there as Reliance has been beaten badly after its AGM rally. Now there is no KNOWN bad news that will be coming. But bad news always comes as a surprise. But no matter what, FII has decided that they will continue selling. Not sure how long the DII will have the capacity to support the market.
The tensions in the Hongkong has eased thereby cheering the global markets.


  1. Today is expiry day. We have our own strategies for the day. It is expected to be a volatile day. 
  2. I have executed butterfly strategies in mine and my client's accounts.
  3. I had bought 11000 ce for the September month worth 1lak. I am in a slight loss in this. 
  4. For countering that I have bought 3 lots of 10700 pe in weekly. Will be buying pe in weekly to hedge that if I carry the ce position till expiry. I am expecting 10-20% return on the entire trade. Will exit as soon as that happens. Let's see.
  5. Added Reliance and HDFC bank to my cash portfolio. Added a small number of shares.
  1. Yesterday when news came that the US will talk to China in October, the US markets rose and closed in green.
  2. The US markets, both Nasdaq and dow closed by gaining 1% gain.
  3. European markets also closed in the green. The major indices gained around 1%.
  4. Today morning the Asian markets are also in the green. Nikkie gained close to 2%.
  5. SGX suggests that we may open in the green today.
  1. $ is trading at 72.11. This is a slight concern. But IT and pharma may be benefitted by this. The day before yesterday it rose by 1rs in a single day which was concerning but it fell yesterday slightly.
  2. Crude is now trading at $61.
  1. FII are clear. They have decided to sell for every rise. 
  2. Yesterday FII sold for 1738cr and DII bought for 1304cr in the cash market.
  1. Nifty has highest OI at 11000ce and 10800pe.
  2. Nifty stradle is at 93.
  3. Banknifty has highest OI at 27500ce and 26500pe.
  4. banknifty straddle is at 292.
  5. Max pain of nifty is at 10800 and that of banknifty is at 27100
  6. nifty may trade between 10800 to 11000
  7. banknifty may trade trade between 27100 to 27500