Trade setup for 7th May

  1. Yesterday was a good day for the markets. We opened slightly low but closed well in the green. The banking stocks gained and closed at day's high. 
  2. SBI has told that moratorium for NBFC will be on case-based. That boosted the NBFC's yesterday. 
  3. But the party seems to be over. Today we may give up most of the gains. The  US closed at the lows due to the rise in unemployment. Nasdaq closed in green due to tech gain.
  4. Yesterday NIIT came with results and the stock surged 11%. 
  5. Yes bank also came with results after the market and today we will see yes bank movement. Mostly it will open in the red. Yesterday Ravneet Gill blamed Rana for the state of yes bank. 
  6. Today we have HCL results.
  7. Maruti will start production at manesar from 12th.

  1. Yesterday the banknifty give a perfect break. I bought banknifty in futures. It surged like a rocket and gave a wonderful profit. It played exactly like I expected. I told in twitter and facebook that we need to close banknifty when RSI is 70+ in 5 min chart. RSI touched 71 and then banknifty reversed after I exited. 
  2. The Bajaj finance trade which I had suggested day before yesterday is in good profit. If any slight news comes out for NBFC then these are the beaten-down stocks that rally.
  3. For today's expiry, I have executed butterfly.
  4. I have bought ITC in cash and executed covered call for the same. To check covered call see 

  5. I bought ITC because SUTTI told that they are not selling stake in ITC. Yesterday it fell because they were about to sell.
  1. US markets were mixed. Dow fell after 2 days due to a rise in unemployment.
  2. Europe closed in the red.
  3. Today morning Asia is also in red. Some of Asia is on holiday like Singapore and Indonesia.
  4. SGX tells that we will open with 100 points lower.
  1. Crude is at $30
  2. $ is at Rs75.75
  1. FII sold for 493cr and DII bought for 322cr.
  1. 9500 ce and 9000 pe has the highest OI
  2. 20500ce and 19000pe has highest OI in banknifty
  3. Nifty max pain is at 9300 and banknifty maxpain is at 19700
  4. Today nifty might range from 9000 - 9300
  5. Banknifty may range from 19000 to 195000