Trade setup for 1st sept

  1. Yesterday I expected that there would be some pull back when banknifty went to 200 DMA. But did not expect such a massive fall. Nifty opened 100+ and closed by losing close to 300 points. On an intraday, nifty has fallen 400 points and banknifty lost close to 1300 points. 
  2. We had news that there was a India-China border clash which triggered the fall but there is no much news from here. So it looks like things are resolved or it was a small negligible clash. 
  3. We had our GDP data which came at -23%. This was expected as we had a lockdown.
  4. Yesterday, there was a MSCI rebalancing and the weight of airtel has reduced from 3% to 1.8%. So there was a huge selling in the airtel by the FII.
  5. The VIX is again back to 20+. Yesterday it shot up by 5%. So I would like to remain cautious because of this.
  6. Today we have the auto sales data which can give the trigger to the nifty to trade higher.
  7. Again we have the AGR verdict today. This AGR verdict is not at all ending. We need to see if it sees an end today or will it be adjourned again. 

  1. I had some butterfly which I had taken on Friday. I did some adjustment when nifty shot in the morning. I had to close them in loss as markets fell swiftly in a short span. I lost close to 3-4% of my capital. 
  2. I will wait for some time before going aggressive. 
  3. Yesterday again I took another butterfly trade.
  1. Yesterday the US markets were mixed. Nasdaq is again at the record high but the dow lost around 0.5%
  2. European markets opened in the red. They lost around 1%
  3. Today morning the Asian markets are flat and SGX is telling that we will open with a gap.
  1. FII sold for 3400cr and DII bought for 680cr. FII sold what they bought in last week.
  2. Most of it was in airtel due to MSCI rebalancing.
  1. Crude is at $45.68
  2. $ is at Rs 73.61