Trade setup for the day

Yesterday was a tricky day. I was totally wrong in my view. After seeing some good result over the weekend, I was confident that yesterday would be a green day. In fact, the markets did open in the green. Banknifty gaped up close to 300 points. Then immediately, the markets fell and banknifty fell 800 points from high and closed in deep red. The major culprits are kotak bank and hdfc bank. There is a big red candle on the charts. Now we don't know if there is a reversal or is it some kind of a trap for people who are short. We need more clarity. The major thing which I am worried about is the big event which is coming near.  Now nifty is exactly at the 20 DMA. I will change my view if this is broken.


  1. Yesterday fall has been slightly critical to me. I had to do a lot of adjustment, especially for all my banknifty trades. 
  2. The ITC futures which I was short on some days back is in wonderful profit.
  3. Today if the fall continues then I will aggressively take positions on the lower side which looks like is the case.
  1. Yesterday was a US holiday.
  2. European markets did not fall as we fell yesterday. European markets closed by losing around 0.4%
  3. Today morning the Asian markets are in red. Nikkei, Hangseng all in deep red. 
  4. SGX also suggests that we will have another bad day of trading today.
  1. FII bought for 5cr. In other words FII did not do anything yesterday.
  2. DII sold 1400+cr. So the main culprit was DII yesterday.
  1. Crude is now trading at $65.06 
  2. $ is now at Rs 71.10