Trade setup for 4th July

  1. Yesterday was a bad day and 11000 which was the support has been broken. Doller index is the reason for the collapse. 
  2. Now the promoters of various companies are selling their shares. This is somewhat a negative sentiment fo the markets. 
  3. We have RBI policy this week and there is a huge hope from the RBI. 
  4. The main draggers were the reliance, hdfc twins, bajaj twins. The Auto numbers were good month on month but still the auto companies were beaten. 
  5. For now the pharma sector seems to be good and there is a volume breakout in various companies like Reddy labs, sun pharma, cadila. So for now that is the promising sector. 
  6. Yesterday, tatamotors came with its numbers and the stock was up by 8%.
  7. The $ getting strong is a positive for IT and Pharma. Since IT has rallied, there is a huge flow to pharma.
  8. Still there is no clear indication that the markets will fall more and trend reversal. I am waiting for more confirmation to short the market. 
  9. The US has put strict laws on the H1B visas.

  1. I have bought sun pharma stocks in cash(small quantity). I will be adding more if there is more fall to average it. I have also sole some cash-secured puts. 
  2. I have done the below trade in nifty
    1. sell 11000ce X 1
    2. sell 11000pe X 1
  3. I have executed the below strategy in the tata motors as there was earning yesterday
    1. sell 127.5ce X 1
    2. buy 132.5ce X1
  1. The US markets closed in the green. The Nasdaq gained more than a percent. Apple and Microsoft have surged and are major contributor to the nasdaq. Dow gained about a percent.
  2. European markets also gained more than 2% in yesterday's trade.
  3. Today morning the Asian markets are positive. But SGX is suggesting a flat start. Lets see if 11000 will be taken. 
  1. FII bought for 7800+cr. This is majorly due to the bhandhan bank stake sale by promoters. So no need to consider this figure for today.
  2. DII have sold for 135cr
  1. $ is trading at Rs 75+. This is good for IT and Pharma.
  2. Crude is at alost $44