Trade setup for the day

We are opening after a  long weekend. We had a fantastic muhrat trading where nifty gained 43 points and banknifty gained 120 points. The man of the match was tata motors which ran 17%. Nasdaq at a kissing distance from its all-time high. We are in a wonderful bull market


  1. On muhrat trading day, I sold 1 lot of ITC, M&M and VEDL. 
  2. I am not bearish. Since markets have rallied a lot from few days, I am just expecting some consolidation. I just want to get some in this consolidation phase. 
  3. But it looks like my trades wont be in my favour. M&M has told that they have sold 13000 unit in the dhanteras. So M&M may not fall. Lets see. I will hedge that in options today.
  4. I will sell ATM puts agressively and buy some calls in small quantities 
  1. Yesterday the US market rallied on some positives on trade news. Nasdaq gained 1%. 
  2. European markets also ended in the green. The EU has agreed for the brexit deadline till october 31.
  3. Today morning the asian markets are flat. SGX shows that we will open in green as we had a holiday today.
  1. On Muhrat trading, FII bought for 6cr and DII bought for 54cr
  2. The FII buying has not improved. But that will improve as positive news come.
  1. The crude is at 61.56
  2. $ is now at Rs 71
As of now, there is no bad news in place. We should break 12000 if this continues by this December.