Trade setup for 23rd April


  1. A day before yesterday, reliance recovered from -5% and ended in green in the second half. Nobody came to know why? Yesterday, they announced that Facebook has bought 10% in jio for 45k cr. Yesterday, reliance opened 5% higher, hit a +ve freeze of 10%, and closed almost near the day's high.
  2. This nifty obviously would have closed higher. Nifty gained around 205 points and banknifty gained around 300 points.
  3. Reliance alone contributed 89 points for nifty.
  4. Now will google tie up with Airtel?? just asking!!
  5. Now with the help of Reliance will Facebook remove net neutrality. 
  6. Suddenly, finance stocks are also gaining momentum. Not sure if there is any news coming on the way. We retailers are the last one to know the things.
  7. Nifty has comfortably moved above 9000. As I had told that 9000 is strong support. It did break 9000 for 1 day and returned immediately. If it was below 9000 for this week, maybe I would have added shorts to my positions.
MY TRADES
  1. For today's trade, I have executed some strangles and butterfly's. 
  2. My Reliance stock is surging. The one stock which I repent buying in this carona fall is bajajfinance. Rest all are mostly in profit, lead by Reliance and reddy labs.
  3. I am bullish for May, so I have executed put ratio spread
    1. buy 8500pe x 1
    2. sell 8400pe x1
    3. sell  8300pe x 1
  4. I have executed the ratio spread in reliance as well
    1. buy 1200pe x1
    2. buy 1500ce x 1
    3. sell 1180pe x 1
    4. sell 1160pe x 1
    5. sell 1520ce x 1
    6. sell 1540ce x 1
    7. Will do adjustment and covering accordingly as market progresses
INTERNATIONAL MARKET
  1. Now the movement of the markets are purely dependent on the crude movement.
  2. Yesterday the crude recovered some of its losses and is now above $20. So the US markets closed in the green. 
  3. The DOW gained around 2% and nasdaq gained around 3%
  4. European markets also gained more than a percent
  5. Today morning the Asian indices are higher. SGX suggests that we will have a flat start and then we will take it from there.
CRUDE AND $
  1. Crude is again above $20. The storage might be full by may if there is no production cut. 
  2. $ is at Rs 76.87. The IT and pharma are the direct beneficiaries of this.
FII AND DII
  1. FII have sold for 1326cr and DII have bought for 863cr
  2. We cannot move higher and break out till FII are back into the system.
  3. This is one disturbing factor for my bullish view. 
EXPIRY SETUP
  1. VIX is close to 40 now. Still this is a high figure. 
  2. Highest OI for nifty is at 9000pe and 9500ce
  3. Highest OI for banknifty is at 21000ce and 19000pe
  4. Max pain theory does not work in these volatile markets. So better to ignore that.
  5. nifty may range from 9000 to 9400
  6. banknifty may range from 20500 to 19000

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