Trade setup for 14th July

Yesterday we kissed the 200 DMA and retraced back. There was a huge selling as soon as we gapped up in the morning. In the second half, there was another round of short-covering where nifty recovered some and closed by gaining 34 points. Reliance has made another high after Qualcomm investment. It has now crossed the1900 mark.  Nifty bank was the loser. ICICI, Bajaj finance were the top losers. 
As I had told, nifty has a huge resistance at 200 DMA and 11000. We need to cross that convincingly to resume the uptrend. Now we have the earning season and may be that can provide the trigger to the nifty.
The US markets fell badly yesterday. The Nasdaq lost close to 2%. Dow lost close to 500 points from its intraday high. 
Now there seems to be a second wave of the virus which is affecting the world. Singapore has officially entered the recession with 41% GDP fall in this quarter.
US has publicly claimed that the China's claim to south china sea is unlawful.
Tomorrow we have Infosys results and I will be doing a live earning trade today. Lets see how that goes.
There is inflation again. Food inflation at 7%. So we need to see if MPC will reduce the rates or not.
There were highest number of COVID cases in the world yesterday.

  1. I was expecting some resistance at 10900 and 11000. I have created huge number of call spreads. 
    1. +11000 ce
    2. -11000 ce in monthly expiry
  2. -10900 ce and +11000ce in weekly expiry
  3. I am also slightly bearish in Reliance. I executed the call ratio spread
    1. + 2000ce
    2. - 2100ce X 2
    3. -2120ce X 3
  4. Today I will be doing an earning trade for tomorrow Infosys earning

  • Yesterday the US market collapsed after rising in the first half. Dow lost almost 500 points fro high and Nasdaq lost close to 2% 
  • The European market closed in the green.
  • Today the Asian markets are in red.
  • SGX tells that there will be a gap down.
  • Crude is at $41.91. Crude prices are falling as there is a fear that the second wave may take over.
  • $ is at Rs75.19.
  • FII have bought for 200 odd cr 
  • The DII was the main culprit yesterday an they sold for 1485cr.