Trade setup for 30th April

  1. Yesterday we had the FOMC meet and the fed has decided to keep the rate at 0 until employment improves in the country and has pledged that FED will take all measures to bring the economy on track.
  2. Yesterday, Gilead announced that it has found a lot of improvement in the drug remdesvir and can be a possible solution for COVID-19
  3. Dow shot 500 points as soon as this news broke. This news gave wonderful confidence among the trader's community.
  4. Coming to our markets, we had a very volatile day yesterday. The movement was like an expiry day movement. Banknifty went up to 21300 and lost around 300+ points in the last hour.
  5. Nifty is up for 5 consecutive days. It looks like we may close in the green today as well.
  6. Nifty closed above 9500 and the momentum was very good. Financials contributed and pharma took a back seat. The most beaten HDFC twins, bajaj twins came with a bang. 
  7. The last hour was very critical as people did not want to carry positions for today as we had FOMC meet. 
  8. Today we have Reliance results, rights issue. But this may happen after the market.
  9. We also have HUL and techm result announcement as well.
  10. Today is monthly expiry and usually, it is expected to be volatile. But since we had a volatile session yesterday, I am not expecting huge volatility like yesterday. But the volumes are going to be low than.
  11. Crude is recovering and is now almost at $25. 
  12. Trump has told that he will allow las vegas casinos to operate on the memorial day which is few weeks away.
  13. Now all countries are planning to open the economy as there is a silver line on the drug and world markets are surging.
  14. VIX is falling and is 33 now. For now, it looks like carona seems to be over and is behind us.
  1. I closed all my Reliance positions yesterday as we had many news day today + expiry + result. Closed it in wonderful profit which I did not expect in such small time.
  2. I am slowly closing all my equity positions as some are in good profit. Closed Reddy lab, maruti also.
  3. For today's expiry, I had executed some strangles yesterday but volatile day made them look critical now. Had to do some adjustments for these. Let's see how it behaves today.
  1. Gilead news and FED outcome took US markets higher.
  2. Europe also gained more than 2%
  3. Hongkong is in red. 
  4. Today morning Asia is also in the green and SGX suggests that we may open with a gap up. Let's see if we can have follow-through.
  1. Crude is now at $23.42. The opening of economy has given a boost to the consumption and surge in oil.
  2. $ is at Rs75.6
  1. The FII are net buyers yesterday. FII bought 722 cr and DII bought for 78 cr. 
  2. FII have sold heavily in last 2 months. Lets see if they continue to buy. 
  1. Nifty has the highest OI at 9000pe and 10000pe
  2. Banknifty has highest OI at 20000pe and 22000pe
  3. nifty may range from 9500 to 9800 and banknifty from 21000 to 22000