Trade setup for the day

Yesterday was a wonderful short-covering rally. As expected, the 12000 did act as strong support. Now nifty is above the 20 DMA and almost close to 50 DMA. We may expect a bigger rally if 50 DMA is also broken. Now Carona numbers are also decreasing which is a huge positive for the global markets especially the Chinese markets.
We have our own domestic issues which the markets will react to. Yesterday the Telcos big people met the Govt and govt has planned to create a telecom fund which will help telcos in their payment of dues. Yesterday Bharti surged close to 7% and idea-vodafone which was considered as an outgoing player surged 40%.
As I had told we were oversold this month and any good news would trigger short-covering which happened. Lets see if 50 DMA is crossed comfortably.


  1. After a long long time, all my trades are in green. Now I am scared !!!
  2. I had ITC futures which are in good profit.
  3. The Nifty long trades which I made at 12000 is also in green. The banknifty long trades are working.
  4. The Crude oil long trades are in green.
  5. For today's expiry, I have executed butterfly which I always do. 
  6. I am short on Cipla, 460 will be SL. I have sold only 5 lots, so let's see what happens.
  1. Nasdaq is again hit a high yesterday. It gained around 0.8% yesterday and dow gained almost 0.4%. This is the election year for them. Do you think the US govt will allow a recession to happen now which the inversion yield curve suggested ?? The US will do everything to make sure that no such thing will happen.
  2. The US fed has decided not to change rates. 
  3. The China bank has reduced rates due to Carona effect in its economy.
  4. European markets also closed in the green.
  5. Today morning the Asian markets are in red except for Japan.
  6. SGX suggests that we may also open in red. Currently it is down by 40 points.
  1. Crude is now at $59.49
  2. $ was not traded yesterday as it was a holiday in Mumbai.
  1. Now, this adds more to the confusion. FII are net sellers in yesterday's trade. They sold for 190cr and DII bought for 590cr
  2. So we may not go more up as FII are not participating much.
  1. Nifty has highest OI at 12200ce and 12100pe
  2. Banknifty has highest OI at 31500ce and 30500pe.
  3. Nifty has maxpain at 12100 and that of banknifty is at 30800
  4. Nifty may range from 12150 to 12050
  5. Banknifty may range from 30500 to 31000