Trade setup for the day

Will the nifty keep flying?? Now there is huge optimism in the market. All are ultra bullish. Now everything is looking good. Budget is looking beautiful. Corona is almost disappeared ( The market rally suggest that). All of a sudden, sell on rallies is now buy on dips. We have rallied from 11600 to 12100 in just 3 days. That is how a short-covering rally usually plays. It was a wonderful V recovery. We may consolidate around this region for some time now. Now I am expecting that this expiry can close around 12300. Let's see.
Today we have the weekly expiry and we have the big RBI policy. So my expiry trades will be slightly low. Most economists feel that the rate will be reduced. I don't think there will be a rate cut.

MY TRADES

  1. I had bought 1 lot of TCS futures. Now that is in wonderful profit. I am now having a trailing stop loss for this. 
  2. I did a butterfly and some strangles. Will do a lot of adjustment today.
  3. I am planning to buy heavily into midcaps. Will identify some quality midcaps and will post regularly.
  4. I am buying IOC in cash.
INTERNATIONAL MARKET
  1. The US markets are surging higher and higher. Yesterday, Trump was acquitted from all charges by the senate. Now Trump is totally clean. He is having a press conference tomorrow. So wait for more roller coaster there. Yesterday the US market gained. The nasdaq gained 0.5% and Dow gained 1.5%
  2. European markets also surged. Even they gained around 1%
  3. Today morning the Asian markets are also in green. Nikkei and hangseng are around 2% higher. SGX suggests that we may open flat. 
CRUDE AND $
  1. Crude is now at $55.97. There might be a sudden spike in crude if China resumes operation which is more likely as Carona fears are diminishing.
  2. Commodity traders can buy crude for long term.
  3. $ is trading at Rs 71.18
FII AND DII
  1. The FII bought for 248cr and DII bought for 262cr.
  2. Now there is a huge sentiment by them. But since we have surged a lot in a small span, I don't expect them to invest more. 
EXPIRY TRADE
  1. Today we have the RBI policy. All eyes are on that and the further movement may depend on that. So the premiums are slightly higher.
  2. 12100ce has highest OI and 12000pe has the highest oi in nifty
  3. 31300ce and 30500pe has the highest OI in the banknifty
  4. Nifty and banknifty in a very small range till RBI policy. The policy decision may take the further move.
  5. If nifty is in the range of 25 points and if banknifty is in the range of 100 points then buy nifty and banknifty sttradle. There might be a huge move in the 2nd half. Keep an eye on my FB and twitter. I will tell if I do this trade.

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