Trade setup for the day

Some days markets behave as if Corona is going to wipe out the world. Some days it behaves as if Corona has no effect on the world. The death toll rises to 132 in China. There are many cases found in other countries as well. The day before yesterday, the world markets fell and yesterday most of them recovered. We have a major event coming and for the next few days, we can have a pre-budget rally if Corona fears depreciate.
There are a lot of hopes from India inc and people from this budget. Need to see if Individuals or the working class will get any tax relief. The probability of taxing tobacco and its products are very high.
In the technical part, we have broken the 50DMA. If we do not cross that in some time, then the fall will be critical.

MY TRADES

  1. I shorted banknifty and nifty futures yesterday when markets triggered fresh falling. I am carrying them for today. Will cover them today or will do some counter trades if markets recover.
  2. I will do butterfly's for tomorrow's expiry. 
  3. I have some good positions in feb series. Will hedge them in the feb 1st week expiry as we have a major event coming up.
INTERNATIONAL MARKETS
  1. Now everyone recovered and the fears of Corona seems to be over for now. We need confirmation for this.
  2. Yesterday the US markets closed in green. Nasdaq closed by gaining more than a per cent and Dow gained close to 0.75%
  3. European markets were also in fire. They gained more than a per cent.
  4. Today morning the Asian markets are in flat to positive. Hong Kong, China markets were closed for a few days now and opened today. So that price is getting factored there.
CRUDE AND $
  1. Brent is again back to $60 mark. Crude might recover some if the Carona fear eases. China is one of the major producer and consumer of oil. So China lockdown will reduce the demand and will make the crude fall.
  2. $ is now at Rs 71.32
FII AND DII DATA
  1. This is little critical now. FII are now selling. 
  2. Yesterday they sold for 1357cr and DII bought for 700cr
  3. This selling might reduce and they may start buying as we have budget season coming and Corona fears are slightly reducing. 


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