Trade setup for 26th May

  1. Yesterday we had a trading holiday.
  2. The US markets were also closed yesterday due to memorial day. The US has threatened to impose sanctions on China if they implement the law which will give them more control on hong kong.
  3. Hertz which was a car rental company in the US has filed for bankruptcy as they could not survive the Carona wave. 
  4. Lufthansa and Germany agree for a 9 billion euro rescue deal. Now many countries are opening up their air spaces and are gradually resuming flight operations. In India, state govt has allowed the flights to resume with restrictions. 
  5. There is a positive vibe in the air as there is a hope of a carona virus. As I told 9000 did act as a support and now we may head higher. 
  6. We are now heading to the expiry week so there might be a lot of volatility in this week.
  7. HDFC came out with results and the numbers look good. But it has fallen 5% on Friday and 21% from its high. So we may have some movement there.
  8. Today airlines will be in focus. That will be the sector to watch out for.

MY TRADES
  1. On Friday, the futures trading was good. I was able to make a profit of 2400 per lot
  2. Now, this week I should close most of the stock options which I have as margins will be charged. So I will be busy in squaring off things.
  3. I am executing the below strategy for this week.
    1. sell nifty 9100 ce x 1
    2. sell nifty 9100 ce x 1
INTERNATIONAL MARKET
  1. Carona vaccine has given a sentiment positive and all markets are in green today morning.
  2. Nikkei is up close to 2%
  3. Hong kong is also up after the fall last week due to China's new law.
  4. European markets were also in the green on Friday.
  5. SGX is indicating that we will have a gap up.
CRUDE AND $
  1. Crude is now $37. This is a wonderful movement in crude. This suggests that the consumption is growing gradually.
  2. $ is at Rs 75.9
FII AND DII
  1. Now this is disturbing. Today's FII activity will be very crucial.
  2. On Friday, they sold for 1300cr and DII sold for 300cr.
  3. Today if FII are buyers and if we hold 9150+ then 9000 support will gain more strength and we may not fall again. 

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