Trade setup for 5th march

Yesterday was another bad day for the markets. Markets went up by 50 points in the morning and by noon it was 200 points down and in the evening it closed with -50 points. But there was a massive recovery in the second half. Let's see if we get any follow-through today. Now the cases on Carona have gone up to 28 in India and IMF says that the growth will be lower than last year. Now the panic of Carona is growing day by day.

MY TRADES

  1. Few days back when nifty touched 11000, I closed some of my positions in minor loss and stayed away as I was not comfortable in this volatile environment.
  2. Yesterday, I have added positions.
  3. I am long on Dr reddy labs and TCS futures. The reddy lab which I bought yesterday is in wonderful profit already. I will keep the buying price as the stop-loss price.
  4. I have sold lot of puts of many companies like tata motors, bajajfinance, bajaj finserv, airtel, cipla. I am ready to take delivery of all these if it comes down more.
  5. Fear and panic is the best time to buy in. In 1 or 2 years when the Carona fears are over then you will be happy to see your portfolio.
INTERNATIONAL MARKET
  1. The US markets closed in green yesterday. Markets are actually funny. When carona cases were increasing the market was expecting a rate cut by the central banks. Then US and Australian banks cut the rates. All expected that the market would rebound but markets fell more because they felt that "banks are reducing rates means that there is a real problem".
  2. Yesterday there was a good short-covering rally in the US markets. But still, the downtrend is intact. We need real movement to consider that the trend reversal is a possibility.
  3. European markets also had a wonderful short-covering rally.
  4. Today morning the Asian markets are also in the green. SGX is suggesting a flat start.
CRUDE AND $
  1. $ is now at Rs.73.20. The IT sector and pharma sector are to benefit from this.
  2. Crude is nor at $51.90
FII AND DII DATA
  1. FII have sold for 878cr and DII have bought for 764cr.
  2. Lets see if we can get FII buying in some time.
EXPIRY SETUP
  1. Nifty has the highest OI at 11500 ce and 11000pe. This is a huge range and this range is built due to the volatility. VIx is close to 25.
  2. Banknifty has the highest OI at 29000ce and 28000pe
  3. Nifty may range from 11150 to 11350
  4. Banknifty may range from 28000 to 29000
  5. In this environment, max pain and other theories may not work. So no point seeing those things.



Comments

  1. Agree on huge range in Nifty and BNF. News through the day will swing the indices either way.

    ReplyDelete

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