Trade setup for expiry on 21st May

  1. Yesterday was a wonderful short covering day. The best part is that the financials came back. Both Nifty and banknifty closed at the high point of the day. Nifty is now above 9000 now. There was a fear that we may again touch 8k when markets fell. But now that fear is not there and 8500 will be a very good support. 
  2. Nasdaq is now at just 5% from its all-time high. 
  3. Now the world is coming back to normalcy and the central banks like FED is expected to give more measures to make sure that the things return to normalcy as soon as possible.
  4. Bajaj auto came with results which has beaten the estimates. So today it may be the Autos day. Keep an eye on all autos.
  5. Aviation are starting slowly on may 25th.
  6. Nirmala sitaraman says that there may not be any more stimulus at the moment. 
  7. For the first time we had Reliance-RE(right entitlement) being traded and looks like there was huge buying in that. Societe generale has bought a huge quantity of this. 
  8. I believe that we will soon forget corona in a month and all eyes will be on the US elections. 

  1. Yesterday, I did execute many baskets of butterfly's and strangles. 
  2. For intraday, I did buy banknifty futures and was able to end the day with a profit of 4 thousand.
  3. The bajajfinance earnings trade is in a profit of 10 thousand. I may probably close that by tomorrow if there is no major move in that today and tomorrow.
  4. 2 weeks back I had done another strategy in bajajfinance. Even that is in good profit. I am thinking of closing that tomorrow as well.
  1. Yesterday the US markets closed in green. Nasdaq gained around 2% and dow gained around 1.5%
  2. Europe also closed in the green.
  3. Today morning Asia is in mild red. SGX suggests that we may open in the red. 
  4. It will be interesting to see if 9000 will be held.
  1. FII sold for 1466cr and DII have bought for 2373.19.
  2. FII selling is the issue now. They are selling as if there is no tomorrow. It was DII which supported yesterday. I expected FII to be buyers.
  1. $ is at Rs75.79
  2. Crude is trading at $35.9
  1. Nifty has the highest OI at 9200ce and 8800pe
  2. Banknifty has the highest OI at 19000ce and 17000pe
  3. Nifty max pain is at 9000 and banknifty max pain is at 17900
  4. Nifty may range from 8900 to 9100
  5. Banknifty may range from 17000 to 18200