Trade setup for the day

  1. On Friday, nifty fell 55 points and banknifty fell close to 400 points.
  2. Now there is nothing to discuss other than the US-Iran war-like situation.
  3. Crude is now surging.
  4. Trump has told that he will destroy 52 sites if provoked. He also told that there will be more sanctions on Iran.
  5. On the other side, Iran has told that it will not abide by the nuclear agreement which it had before.
  6. I feel that if this war doesn't escalate then one should use this opportunity to buy-in. 
  7. Now, SEBI and exchanges have directed brokers not to give leverages. So now trading volumes will fall drastically if implemented properly. So now technicals will again gain grip and popularity among traders.
  1. I will be concentrating more on a slightly longer term than near term.
  2. This warlike situation can take turn anyway. I hope and believe that it will not escalate. If 3rd world war happens then it will wipe out half of the world population which is the worst nightmare. 
  3. I have short ITC futures ahead of budget. I have added more to the shorts in futures. Now I am in wonderful profit.
  4. I will add shorts in the banknifty and nifty. This war-like situation with crude surging may take nifty and banknifty lower.
  1. On Friday, the US markets fell by close to 0.75%.
  2. European markets closed in the flat zone.
  3. Today morning the Asian markets are beaten. Nikkei market is down by 2%. Hangseng down by close to 0.75%. 
  4. SGX is down by 55 points. 
  1. Crude is now at $70.23. The surge will continue if the tensions prevail in the middle east. 
  2. $ is at Rs 71.79
  3. Will $ and Crude rising, it is impossible for the Indian stock market to continue the rally upside. So a trend reversal may be possible. But nothing is certain.
  1. Now, this is getting interesting. FII are net buyers.
  2. On Friday, they bought for 1200cr and DII sold for 1029cr.
  3. I am pretty sure they will start selling when tensions escalate. Lets see.