Trade setup for 22nd April

  1. Yesterday was another bad day for the crude. The spot fell 25% and now it is at $19. Now all are ultra bearish in this and all analysts are projecting a single digit for crude. The June futures have fallen 45% yesterday.
  2. Yesterday, Reliance fell 5% in the morning and by evening it recovered and closed in green. I was surprised because oil had been hit hard and how Reliance could recover? Today I got the answer as Facebook had invested 45,000 cr in Rel jio. 
  3. Reliance is a very good strategic player. When oil lost its value, they migrated to data which is the next oil.They invested close to $40 billion in jio 5 years back and now they have sold 10% stake to Facebook for $6 billion. When markets fell brutally due to Carona and Reliance was below 1000. They invested 9k cr in Reliance shares.
  4. The IT is in pressure as Trump has stopped all immigration.
  5. The Dow fell close to 600 points.
  6. We have broken a crucial point of 9000. Crude is the major reason for this.
  7. The US FDA has approved tests that can be conducted at home for covid.
  8. It's important to see if today's fall will be balanced by Reliance and can we regain 9k in this week.
  9. In India, we have crossed 20k in the total number of cases and 25lak worldwide.
  10. European markets also fell close to 3-4% yesterday. Nasdaq which mostly has technology fell close to 3% after Trump stopped immigration.
  11. Today morning the Asian markets are also in the red. SGX suggests that we will open in red. It will be interesting to see how Reliance shapes out.
  12. FII are selling in every opportunity they are finding. Yesterday they sold 2000cr and DII also sold for 68cr