Trade setup for 20th may



  1. I would say that yesterday was a bad day as we opened higher and gave most of the gains.
  2. Reliance rights issue to open today at the price of Rs 1275.
  3. The WHO says that it is too early to bank on the new corona virus. Trump has threatened WHO that the US would cut all funding to WHO. The US markets fell as soon as this news came.
  4. Yesterday, the Bajaj auto, finance came out with numbers. Both were as expected. So let's see how these open today. Today Bajaj finance might be in positive as they sounded confident and they were fully transparent in their operations. I have a trade-in bajajfinance and you can check it here in the below link 
    https://www.youtube.com/watch?v=tJv-bflJQPk&t=247s
  5. Today we have Reddy labs announcing its numbers.
  6. There is a cyclone which may hit the coast of Bengal and Odhisa. 
MY TRADES
  1. I did not do any future trades yesterday as did not get a conviction trade.
  2. I have executed a short straddle in Bharti airtel at ATM. There will be a IV crash and I am expecting some profit in this trade.
  3. I am slightly bullish and I feel that 9000 will be taken soon. So I have bought 9000ce in the June series(small quantity though).
  4. In the weekly expiry, I have sold 8500, 8600, 8700 pe
  5. I  will short bajajfinance pe if there is a huge gap up for today. Will take delivery if the stock falls again to average my old positions.
  6. My Reliance ratio spread is in wonderful profit as Reliance is falling. 
INTERNATIONAL MARKET
  1. Many doubted the results published by Moderna on COVID tests and there was an accusation of insider trading. The stock fell 10% yesterday.
  2. The US markets closed in red as this was a sentiment negative news.
  3. European markets also closed in the red and lost around a per cent.
  4. Today the Asian markets are in the slight positive. SGX says we will have a gap up. I hope we will have follow-through and the upside continues, unlike yesterday.
FII AND DII
  1. FII has sold for 6 consecutive days now. They have sold around 10k cr in last 6 sessions. This is bad. But the good thing is yesterday, their long positions are 44%. So they are buying in futures. So I believe that very soon they will in cash as well very soon.
  2. FII have sold for 1300cr and DII have bought for 1659cr
CRUDE AND $
  1. Crude is at $34.68. The consumption is gradually coming back as China has started to recover.
  2. $ is at Rs 75.68.

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