Trade setup for 11th June

Yesterday the markets opened higher and obviously it was led by Reliance and HDFC. The day before yesterday these 2 dragged and yesterday these 2 took it higher. In the last half an hour, banknifty added 400 points in the last half hour. So this was like a trap to most of the pre expiry traders. The major news yesterday was the FED meeting. Powell says that they will provide stimulus until the labour market is stabilized and FED is not even thinking of increasing rates. He added that there might be near zero rates till 2022. The Nasdaq has hit the 10k. Today we have the AGR case hearing. So banknifty will be in the news.  So we can have our IT biggies to perform today. The companies that are rallying in the US are the techs and tesla has hit an all time high.
So the Carona news is now fading out and the economy seems to be back. As I told, I will not be surprised if we hit an all time high this year.

  1. Now the reduced margins are making us feel good. I have executed butterfly's in huge numbers. I also have condors and ironfly's as well. 
  2. In intraday future, I had sold nifty futures and was able to make a profit of around 4k. I had mentioned this in telegram as well.
  3. Today there will not be any intraday trades as I will be busy in expiry setup.
  1. Yesterday the dow closed in red but the Nasdaq made a high by crossing 10k.
  2. Europe closed in the red
  3. Today Asia is in red. SGX says that we will open in flat.
  1. Is the FII selling back ??
  2. Yesterday they sold for 919cr and DII bought for 500cr
  3. As FII has pumped heavily in a short time, I do not expect them to pump in more liquidity. At the same time they may not even remove as in panic. There will be a gradual increase or removal. So the VIX will fall, premiums will fall. 
  1. $ is now trading at Rs 75.58. IT companies in India are enjoying this $ revenue.
  2. Crude is trading at $40.80. So consider the economy is recovering as long as crude is above $35.
  1. As I had told that OI analysis will be more confusing after the margin reduction. We will now have 2 strikes with high OI.
  2. Nifty has highest oi at 10300 ce and 10500ce. There is highest OI at 10000 on put side.
  3. Banknifty has highest OI at 22000ce and 20500pe
  4. I am expecting the nifty range to be 10000 to 10300
  5. banknifty may range from 20500 to 22000