Trade setup for 31st august

  1.  Friday was a wonderful day for the market as the banking stocks shot up and banknifty shot up close to 1000 points. We are just another 500 points for the 200 DMA for the banknifty. We may probably break that in this week as banknifty is very strong at the moment. Banknifty is in green for 6 consecutive traing sessions and is up by 10% in last 7 trading sessions. So there might be some minor pull back while breaking the 200 DMA. I will be using the pull back to enter if it happens. 
  2. This week is a week full of data. We have the GDP data coming today, US jobs data which is coming this week. The China PMI data which came some time back seems to be good and China and Hongkong markets are in green. 
  3. On Friday, Japan PM resigned. There was some correction in the Nikkei index on Friday but today it seems to have moved forward and is trading in green. 
  4. There will be no lockdown other than containment zones. Center has come out with unlock 4.0 guidelines. Metro transportation will begin. Today the moratorium period ends. 
  5. Reliance has bought future group for Rs 25k cr. Now Reliance retail will get more market share in the retail market giving good competition to other brands like dmart etc. 


  1. I am expecting the data which comes to be beneficial to the market and my view is bullish. I have executed some call spreads in banknifty 
  2. I am planning to do short straddle in the 11500 for the December expiry today. 
  3. I will also be executing butterfly today for this weekly expiry.


  1. The global markets seem to be good. The US markets are surging higher and higher. There is a huge liquidity gush into the market.
  2. US markets closed in the green and the frontline indices are at the highest point and not showing any sign of correction.
  3. European markets closed in red. 
  4. Today morning the PMI data of China has taken all the Asian markets higher. 
  5. SGX suggests that we will open positively.
  1. FII are on a shopping spree. They are pumping in funds as if there is no tomorrow
  2. On Friday, they bought for 1000cr and DII sold for 540cr.
  1. Crude is at 
  2. $ is at Rs 73.38. It has fallen from 75 to 73.5 which is a wonderful comeback for the INR. So IT and pharma may not shoot up more.