Trade setup for 16th June

  1. We can clearly see the volatility which is in the markets. One day it goes up 200 points and the other day it falls 100 points etc. Even yesterday the markets were very volatile. Nifty opened badly but was able to recover some in the day. It was Reliance which came to the rescue and single handly took nifty up.
  2.  All banks have fallen, The VIX shot up 5% yesterday. Now it is again back to 30+ which indicates that the volatility is very high. 
  3. Not only in India, even in the US we have the same scenario. During our market hours, the dow futures were down more than 700 points. But yesterday when the US markets closed, the dow closed in the green.
  4. FED is getting ready to buy corporate bonds. Usually, when the markets are so volatile there won't be any huge outstanding rally. The markets will be in a range. The range will be slightly wide. Now the range is 9500 to 10300. Let's see if this is broken.
  5. Tata motors came with results and results were bad but the ADR was up by 6%. Today there will be a rally in that as markets also support that.

MY TRADES
  1. I have executed the below strategy yesterday for December month
    1. +2 X 10000ce
    2. -1 X 9500 ce
    3. -3 X 8000 pe
    4. -3 X11500 pe
  2. I have executed the below strategy for the current week expiry
    1. +5 X 9600 pe
    2. -5 X 9700 pe
    3. I will convert this to iron condor today when markets shoot up.
INTERNATIONAL MARKET
  1. The US closed in the green and the dow futures is now suggesting that the rally will continue. The fear of 2nd wave may not be very effective as it was in the first wave. But still, there will be uncertainty.
  2. European markets, however, closed in the red.
  3. Today morning the Asian markets are in the green. SGX says that we will get a 200 point opening.
CRUDE AND $
  1. Crude shot up with the hope of output cut but closed in the red. Now it is at $39.5
  2. $ is at 76
FII AND DII
  1. FII are on a selling spree. Yesterday they sold for 2960cr and DII bought for 1076cr
  2. Whenever things look well, the FII selling will come as a bad news. Lets see if we can see buying today.

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