Trade setup for 21st April

  1. The hottest topic for the day is the crude oil price. Yesterday was the historic oil plunge. The WTI crude may futures contract fell 300%. It fell to -$36. This is the first time in the history that has happened.  Now, one would be wondering how crude prices can go to negative. Oil-producing is one biz and oil storing is another biz. Oil storing also costs money. Since the oil consumption across the world has gone down and all oil storages are full, the oil producers are forced to pay for oil storage. The supply surge and storage scarcity made WTI crude futures were trading in negative $37.
  2. The Nymex crude also fell to $11 which was its historic low. MCX crude oil delivery for April closed at Rs 965 per barrel down Rs 471, or 32.8 per cent.
  3. Coming to the markets, today we will have oil-related companies like Reliance, BPCL, HPCL etc to be in focus. 
  4. The US markets closed in negative obviously to the oil vows.
  5. Today the Asian markets are also in deep red. SGX suggests that we will have a bad start.
  6. Trump tweets to sign executive order to temporarily stop immigration to the US.
  7. So 9000 will be support point. If that is broken then we may have a bad fall again.
  8. As I had mentioned earlier, 9400 was the Fibonacci retracement point. I was expecting a breakout as there was some good news. But that seems to be not happening and the corona aftermath seems to be working on various industries now. 
  9. I will still hold on to my bullish view as long as 9000 is held. If that is given up then my trades will all be on the short side.
  10. Yesterday the FII sold for 265cr and DII sold for 788cr. It is obvious that even today they will be net sellers.
  11. Yesterday infy came with its results and the ADR had no impact on that. It closed almost flat. So today infy will be interesting to watch as they have result and trump stopping immigration impact. There will be sudden IV fall and the premiums will collapse if major movement is not seen.