Trade setup for 23rd June

  • Trump signs a proclamation suspending H1B and H2b visas. So now the IT service industry will be in trouble. It's expected that these kinds of things could happen during election season. Trump is doing these to woo the US citizens as elections are nearing.
  • Nasdaq has hit a record high yesterday. 
  • Coming to our market, we are rallying like there is no tomorrow. Still, we have not anywhere near the 200 DMA. This was the brutal fall we had in Feb and March.
  • The financials are leading. Especially kotakbank, bajaj twins. Remember, these were the most beaten-down stocks. Yesterday, Glenmark rose 30% after they got permission to produce oral medicine for COVID.
  • This is expiry week and there might be some more volatility in the last 3 days.
  • Reliance has hit $150 billion mark. So all records are probably done in reliance. Debt-free done, $150 billion done. So yesterday, it fell in the last hour after all record was beaten. So from now, reliance may not lead the market. It has rallied a lot and will consolidate for some time.
    • I have executed a call spread for the next series.
    • + 1 X 2000 ce
    • - 1 X 1940 ce
  • I have sold puts aggressively as some of my call spreads are in mild danger
    • Have sold 9900, 10000, 10200 pe for this series. 
    • have bought 9500 pe in equal amounts to lower the margin. 
  • Today we have trilateral meet between Russia, China and India.
  • Today morning the dow was down by 400 points but now it is trading in green. SGX was down more than 100 points. Now it is in green. Looks like we may rally higher. I won't be surprised if we goto 200 DMA in the July series.
  • Yesterday the FII bought for 400+cr and DII sold for 1300 odd cr. 
  • $ is at Rs 76 and Crude is at $42+
  • Gold is shining as it is soaring everyday.