Trade setup for the day

Yesterday was another red day. But the fall was not as violent as it was the day before yesterday. So the Corona virus which was compared as SARS did not make that effect. But the thing is nifty has broken the 20 DMA. If it is not taken out today then 50DMA will be the next level. I will consider trend reversal if this is broken. Now its very difficult to say what direction the markets will take.


  1. Yesterday I was expecting the 20DMA to be protected so I bought nifty in futures. But nifty started falling after that. So I had to do some counter trades. 
  2. I am filtering some stocks in midcap to invest for a long time.
  3. Today we have a lot of earning especially from  Axis and RBL which plays a role in banknifty movement. Planing to trade in banknifty maybe after the axis results.
  1. Yesterday the US markets closed in mild red. They were on a holiday day before yesterday and the fall yesterday was not that bad as expected. Nasdaq fell 0.2% and Dow fell 0.5%
  2. European markets were also in the red. They recovered some after falling. 
  3. Today morning the Asian markets are in green. Corona virus fears are not that bad as of now. 
  4. SGX suggests that we may open in the green. 
  1. Crude is falling so that is good for us. Crude is at $64.32
  2. $ is now at 71.20
  1. Yesterday both FII and DII were sellers. FII sold for 50cr and DII sold for 307cr.
  2. As we have a major event coming, the FII and DII are slightly low in their volumes.