Trade setup for 22th June

  1. Friday was a wonderful day for the stock market. The flag bearer was the Reliance which crossed 11lak cr mark and they declared that they are now a debt-free company. Reliance shot up 7% killing all shorts. We are now in the expiry week. There will be huge volatility in this week as there will be lot of coverings. 
  2. Now govt has asked product wise report which are imported from China to curb the import. Now Glenmark, Cipla got approval to manufacture the medicine for the COVID. So today, these pharma companies will be in focus today. The COVID cases worldwide has touched 90lak. US had the highest number of one day covid cases registered.

  1. I had a call spread in Reliance. Yesterday that was in trouble as there was a massive move. So,I had to do some adjustment for that. Mostly, I may have to close some in the loss as we have only 3 days.
  2. I will create another spread for next month with double the quantity for reliance(martingale strategy). 
  3. I am executing the ratio spread for the next series
    1. buy 10000pe X 1
    2. sell 9800pe X 1
    3. sell 9700pe X 1
    4. sell 9600pe X 1
  1. The US markets closed mixed. It closed in a slightly negative note.
  2. European markets closed in the positive note.
  3. Today the Asian markets are in a flat zone. SGX says that we may open slightly negatively.
  4. I feel that that this dip will be bought and markets will recover. The shorts will not get any opportunity to cover loss in this expiry. 
  1. FII have bought 1200+cr and DII have sold for 880cr.
  2. In FNO markets, FII have bought more futures and probably have bought puts to hedge them.
  1. Crude is at $42+. In India, petrol and diesel prices have soared for 14 days now.
  2. $ is trading at 76+