Trade setup for 4th June


  1. Sorry, yesterday I could not write the blog. One week back we were at 9000 and within a week we are at 10000. 
  2. Yesterday we did have a mini expiry. Banknifty gained more than 1000 points and then fell in the 2nd half and gained only 400 odd points. 
  3. We are in green for 6 consecutive days. Now, this is how a strong liquidity push can take you. But I somewhat feel that we have run too much in one week. 
  4. So all the 10000 call writers are trapped today. Reliance rights ended yesterday. It has been oversubscribed 1.59 times. 
  5. Now there is a cyclone in states like Maharastra. This is normal every year in cities like Mumbai. The city drowns during rain season. 
  6. Now Carona seems to be a story which is over. Now it is taken to be a normal flu. The cases seem to rise but the economies are opening up. We need to wait and see if there is a second wave which creates panic. 
  7. I won't be surprised if we are at all-time high this year only. Nasdaq is just 1% away from it all-time high. 
  8. The beaten-down financials have come back very strongly. Bajaj finance has gained more than 5% yesterday but closed with a gain of 2.5%.
  9. Now farmers can sell their goods anywhere in the country.
  10. The cabinet has approved the IBC suspension which gave relief to many companies.
  11. Now UK banks back China over HongKong law. EU-China meet is postponed. The US to stop some of the Chinese airlines.

MY TRADES
  1. Yesterday I executed more buckets of butterfly. I was very happy to see the reduced margins. This was very tempting to increase the volume but I did not do. I would like to stay low on volumes for now and will scale it up gradually.
  2. I have taken some aggressive calls for today's expiry
    1. Executed 10200ce/10300ce spread in huge quantities.
    2. 10100ce/10300ce spreads in huge quantities.
    3. I have executed some call spreads
INTERNATIONAL MARKET
  1. The liquidity push is taking the world market higher. The Dow gained for 4th day consecutively. Nasdaq is just around 1 per cent low from its all-time high.
  2. European markets are also on fire. The DAX was the strongest among them yesterday.
  3. Today morning the Asian markets are flat to negative. Probably they are tired running the whole week. SGX says that we will have a flat start today.
FII AND DII
  1. FII bought for 1850cr and DII sold for 750cr
  2. Unlock 1.0 and liquidity is taking us higher.
EXPIRY SETUP
  1. Nifty has the highest OI at 10500ce and 10000pe
  2. Banknifty has the highest OI at 22000ce and 20000pe
  3. Now OI will be more confusing as people will add multiple strikes to reduce the margins.
  4. Nifty may range from 9850 to 10200
  5. Banknifty may range from 21500 to 20500

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