Trade setup for 21st November

As I anticipated, 12000 is a very strong resistance. So breaking that was not easy. Yesterday nifty did break that and moved till 12030 - 40. The second half we saw the reversal and nifty closed below 12000. Even banknifty followed nifty. At point it looked like banknifty would close in red. But it managed to close in green. Telecoms get 2 year time to pay the fines which was imposed on them. The cabinet approves sale of BPCL and other companies. Sebi has imposed some rules on the PMS. Now minimum capital for PMS is 50lak and this has been increased from 25lak. The networth of managers are raised from 2cr to 5cr. This is a jolt for the PMS industry.

MY TRADES

  1. I have short 5 lots of nifty futures and 5 lots of banknifty futures yesterday around 1:30 when both were at near day's high.
  2. I usually do not go for these high-risk trade with an exception of Wednesday as the gap up/down on Thursday won't give us a jolt as its expiry and we get margins from brokers.
  3. When markets moved above 12000, some of my positions in December series were in danger. So to protect them, I bought 1 lot of Nifty December futures and sold 11800, 700 and 600 puts.
  4. On the paper trade, I have bought 1 lot of TechM futures at 769.65. 
INTERNATIONAL MARKETS

  1. The US passes the Hong kong bill and now China is not happy with this decision.
  2. The US markets closed in the red. The Nasdaq closed by losing 0.5% and dow lost 0.4%
  3. European markets also closed in the red. The major indices lost around 0.5%
  4. The Asian markets are trading in the red today. SGX shows that we may open in the red. But SGX did recover from the day's low.
FII AND DII 
  1. Yesterday both the FII and DII were buyers. 
  2. FII bought for 566cr and DII bought for 183 cr.
  3. Again FII are buyers now. Let's see if this buying help breaking 12k decisively.
EXPIRY SETUP
  1. Nifty has highest OI at 12000ce and 11900pe.
  2. Banknifty has highest OI at 31500ce and 31000pe
  3. PCR of nifty at 12000 is above 1. So its difficult to say if 12000 will be a resistance or not.
  4. Max pain of nifty is at 11950 and that of banknifty is 31300
  5. Nifty might range from 11900 to 12050
  6. Banknifty might range from 31500 to 31000 

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