Trade setup for the day


  1. Finally, the big week is coming to an end. I call it a big week because we have rallied close to 450 points in just 4 days. When was the last time you saw this, especially after a massive fall??
  2. Yesterday, the RBI came out with its policy and maintained a status quo. It did not raise the rate. This gave a major boost to all the bank stocks and real estate. 
  3. Yesterday was a weekly expiry and it was a slightly bad day for me. I will be busy in changing broker and migrating clients to the new broker as I have many issues with the existing one. Yesterday I was able to make around 10 thousand profit.
  4. We now don't have any major event coming up. Now, the Carona news is picking up. Hongkong has found new cases. Japan has found new cases. Will Carona become the centre of attraction and bring the markets down ?? Its a million $ question.
  5. Yesterday nifty shot up 50 points and banknifty shot 300 points. From the technicals point of view, both nifty and banknifty are slightly above 20 DMA. The indices had moved much far from the 20DMA and it has now retraced back to the 20 DMA. Will this hold??
  6. My workshop attendees would have caught this divergence if they have observed this carefully.

I believe that 20DMA will act as a strong support provided the Carona does not escalate.

MY TRADES

  1. I averaged by adding more to my TCS futures long which I had as it fell. It is still in profit. Today's move will be crucial for me. let's see.
  2. Yesterday I was busy in expiry trades. So I did not trade much in my positional trade.
  3. I have sold 11900pe, 11800pe and 12000pe to hedge my overall positions which I have.
INTERNATIONAL MARKETS
  1. The US markets closed in the green. The dow made an all-time high and closed slightly lower.
  2. Nasdaq gained 0.6% and dow gained 0.3%
  3. European markets gained around 0.5%
  4. The Asian markets are lower. Majorly because of Carona. 
  5. SGX suggests that we may open in a flat zone. Lets see if we break the 4 days winning streak today.
CRUDE AND $
  1. Crude is trading at $55.29. The prices may fall if  Carona escalates.  I have bought Crude oil assuming that the Carona fears will diminish and prices might rise again. Will close my positions if the thing does not work.
  2. $ is at Rs 71.20
FII AND DII
  1. FII are net sellers in cash markets. They sold for 560cr but DII bought for 300cr
  2. Today's FII action will be crutial to take the market higher
As we have had a major rally, we may take a break and consolidate for some time. The nifty may not break 12000 again provided Carona fears goes.
One can execute a put spread in nifty and banknifty
1. buy 1x 12000pe
2. sell 2x 11900pe
3. sell 1x 11800pe


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