Trade setup for Dec 5th expiry

Yesterday was a good short covering volatile day. The markets were very volatile yesterday. The last hour short-covering was strong nifty closed by gaining 50 points and banknifty gained 366 points.
Today we have the RBI policy and it is expected to cut rate by 25 BPS. Japan will be announcing stimulus today. Today will be a difficult day to trade as we have a event coming.

  1. The telco tariffs may help Reliance. A day before it was up by 3%. Yesterday it was down by close to 2%.
  2. Yes bank is in the trading ban. We have seen OI increase in 5 Rs which was unusual.

  1. Yesterday was a lucky day for me. I was carrying banknifty future short from day before yesterday. I closed that trade in the morning when banknifty fell with good profit.
  2. In my main account, I closed some of the positions as markets may be volatile today. Since most of the move is done yesterday, I don't think there will be much moving after the RBI policy.
  1. Yesterday, the US markets closed in the green after news came that the US and China are moving closer for trade talks. The US markets closed with a gain of 0.5%
  2. European markets also closed in the green. They gained around 1%
  3. Today morning the Asian markets are mildly positive. SGX suggests that we may open in the flat to the negative zone.
  1. Crude is trading at $62.90 
  2. $ is at Rs 71.52
  1. FII selling continues. Yesterday it was the DII that supported the market and took the market higher.
  2. FII sold for 781cr and DII bought for 900 cr.
  1. Nifty has highest OI in 12100ce and 12000pe.
  2. Banknifty has highest OI at 32000ce and 31500pe
  3. Nifty max pain is at 12000 and that of banknifty is at 31900
  4. Nifty and banknifty may end the day in red. Nifty may trade from 11950 to 12150
  5. Banknifty may trade in the range from 31500 to 32200