Trade setup for 20th April

Friday was a very important day for trading. Nifty exhibited many important things. It opened higher and then there was selling. As nifty came near 9000, there was a massive short-covering and nifty closed almost at 9300.
The banking which was beaten down came back strongly. The autos also joined their hands. Axis Bank, Maruti, Kotak bank which were beaten came back strongly.
Now 9000 is very strong support. My view is slightly bullish for now. Hope there is no new bad news henceforth. Also 9400 plays as a resistance which is the Fibonacci retracement level as well.
We have moved
Also, there seems to be some positivity in the Carona as well. The number of new cases is slightly going down day by day across the world and some of the pharma companies are near to find the cure for this virus.
Japan exports slump due to corona virus.
The VIX is falling and is now at 42.
Today there will be some places which be relaxing lockdown today.


  1. I have executed a put ratio spread
    1. +1 x 9000pe
    2. -1 x 8900pe
    3. -1 x 8800 pe
    4.  -1 x 8700 pe
  2. I have also bought 9000ce in may series. 
  3. I am long on metals. I have bought Hindalco futures for may month.

  1. There is a new protest in the US for opening the lockdown and economy. They are demanding new facilities to test the virus. There is pressure on fed to help set up new testing centers.
  2. Trump has told that the virus might have passed its peak. He is more worried about his seat and is looking for an opportunity to remove the lockdown.
  3. On Friday, the US markets rallied close to 1.5% as the US is moving to open its economy.
  4. European markets also closed in the green on Gilead which announced that the drug might be in place.
  5. Today morning the Asian markets are in red. Japan is in red as its macro news came and their exports fell.
  6. SGX suggests that we may open in slight red.
  1. Brent is at $28. 
  2. $ is at Rs 76.5
  1. The FII have sold 1400cr and DII have bought for 534cr.