Trade setup for 19th march


  1. Now the best trade is no trade as things are very volatile. 200 points change in nifty has become a norm. FII selling 5000cr is the norm. These were the weekly or monthly ranges before. 
  2. Coming to markets now we are close to 8000 mark. We have broken the circuit day's low of 4500. Now we are trading at a 30% discount from the high. Most of the good companies are trading at a discount of 30-35%. Is this the bottom?? It is a million-dollar question. 
  3. RBI has now started to buy bonds in OMO worth 10000 cr. 
  4. Yesterday after 3 there was a huge trade in ONGC. It shot up 40% in a few minutes and rapidly fell 40% within minutes. This is very strange and scary.
  5. Indusind bank fell close to 35% in a single trading session. The reason is that the fears in the banking sector are increasing. 
  6. Today we have the PM announcement where there can be a stimulus for the service sector.
  7. The ECB has given a stimulus of 750 billion euro pandemic bond-buying program.
  8. Now there are some countries which have developed medicine for the Corona and hopefully we may have medicine in some weeks.
  9. Today yes bank is out of nifty. That was the only winner in the nifty in the last few days but today it is out. 
  10. No new cases in the Wuhan which was the epicentre of the virus.
  11. CBOE vix is at 73 

INTERNATIONAL MARKETS

  1. Dow lost 1300 points yesterday. Now 1000 point move is common in dow.Dow is now below 20000.
  2. Europe also lost 
  3. Today morning Asia was slightly higher but now all are again in the red.
  4. Kospi lost 5%. Nikkei is down by a per cent. 
  5. SGX suggests that even 8300 is gone now.
FII AND DII DATA
  1. FII have sold 5000cr and DII have bought for 3636cr
  2. Now FII are selling in heavyweight and blue chips. It may get worst if things don't improve soon.
CRUDE AND $
  1. Crude is now at $26. This is the only good news for India but the low consumption is a worry 
  2. $ is now at Rs 74.26
EXPIRY SETUP
  1. I may not trade expiry today as the volatility will be huge especially in the banks.
  2. Even if I trade, the volumes will be very low.
  3. Nifty has highest OI at 9000ce and 8100pe.
  4. The premiums are very high and by seeing the premiums it looks like today the world is coming to an end

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