Trade setup for 3rd December

Now we are getting signs that the market is weakening. Trump threatens to impose tariffs on the import of the metal from China and other countries. Trump signals that HongKong law complicates talk with China.


  1. I am slightly adding more to my shorts now. The trade wars may get escalated. The charts are clearly showing that there is a mild weakness. 
  2. I won't add aggressive trades until 20 DMA is broken on the charts in nifty and banknifty.
  3. I have done the below strategy 
    1. short nifty futures
    2. + 12200 ce x 1
    3. - 11700 pe x 3
    4. -11800 pe x 3
    5. -12400 ce x 3
    6. -12500 ce x 3
  4. I will continuously monitor the situation and make adjustments accordingly.
  5. I have banknifty naked short in futures 3 lots. 
  6. The bajaj twins are falling. I have a good quantity of equity in my portfolio. I have bought a few lots of puts to hedge that. The covered call which I do will continue as it is. 
  1. The US markets closed in the red. It lost close to 1% after trade wars escalated and now China is also retaliating by not allowing the US ships in its port.
  2. European markets were also in the red. The major indices lost more than 2%.
  3. Today morning the Asian markets are also in the red. Nikkei and HangSeng are down by more than a per cent. 
  4. SGX suggests that we may open in the flat. Let's see how that opens.
  1. Yesterday the FII sold 1750cr and DII bought for 753cr.
  1. Crude is now at 61.04
  2. $ is trading at 71.65
Because of international markets we may not surge more. We may have a pre budget move now. But the risk reward ratio is more likely to the bear side now.