Trade setup for 28th May

  1. Finally, the most exciting month has come to an end. Yesterday we did have a massive mini expiry rally. There was a huge short covering in the banks. There was no particular news that triggered the move. It was pure short covering as banks were oversold. I personally did expect a short covering but definitely did not expect such a violent short-covering. 
  2. There is much bad news around but the markets do not seem to care and the rally is continuing across the globe. The series of bad news is the India-China border escalation, US-China trade wars over Hongkong, now Carona vaccine may not be available till 2021. 
  3. Today SpaceX was supposed to launch a commercial rocket to space but that got cancelled due to bad weather and will happen on Saturday. 
  1. Yesterday I missed catching the big rally in the banknifty. I bought and sold early for a small profit and then the banknifty rallied 1000 points. But that's OK. Will stick to the game plan and discipline. 
  2. Yesterday I was caught in the big rally. Had to do a lot of adjustments and had to close some in the loss as I did not anticipate such a huge rally.
  3. I am carrying a lot of positions for today's trade. Lets see how the markets turn today.
  4. Carrying some trades for today's expiry. Lets see how things span today.
  1. The US opened low but there was a sharp pull towards the end and the Dow ended in the green of 500 points. The tech stocks were the draggers so Nasdaq was in the red.
  2. Europe also closed higher. 
  3. Today the Asian markets are in green. HongKong is the only market down due to its political issues. SGX says that we may gap up.
  1. Nifty has highest OI at 9500ce and 9000pe
  2. Banknifty has highest OI at 19000ce and 18000pe
  3. Nifty max pain is at 9250 and that of banknifty is at 18400
  4. Nifty may range from 9300 to 9400
  5. banknifty may range from 18500 to 19500
  1. Yesterday the move was completely by the DII flows.
  2. FII have sold for 335cr and DII have bought for 2400cr