Trade setup for 01st October


Yesterday, it looked like it would be a trending day but then in the last hour, markets fell and closed at flat. 

The US markets shot up as economy rebounds. The debate has given an upper hand to Trump and that also cheered the market. The US markets are going to be very very volatile. When the mother market is volatile, it is obvious that we are also going to be volatile. 

Last Thursday, the longs were trapped and today all the shorts are likely to be trapped as we are going to open in a gapup. This is how the volatile markets are going to behave. It's highly unpredictable. It is better to keep the volume low until the US elections are over.

The Fed has extended restriction on bank dividend and buyback in Q4.

The Japanese market is shut due to some technical glitch. Today most of the Asian markets like China, Taiwan, hong kong are closed.

There is a new investor in Reliance retail. Silverlake is investing and the valuation is more than the previous valuation. So Reliance will be in focus today. 

The core sector numbers which came were bad. 

PNB reported a fraud of 1200cr by Sintex industries. So this will be in focus.

Unlock 5 guidelines is out and theatres, restaurants, bars are allowed to operate. So PVR, Inox, restaurant stocks will be in focus.

We have 3 day holiday coming up. So I believe that there will be some selling in the second half as there is a vacation. 


  1. Yesterday I executed some iron condors with the remaining amount which I had. Today I will have to do some adjustment trade as there will be a gap.
  2. I did some mini expiry trades yesterday and I was able to close most of them yesterday with a profit of 30 thousand.
  3. I will be doing a call ratio spread trade in reddy labs today. Will update the strikes tomorrow.
  1. The US markets closed in the green. There is a huge expectation from the stimulus package and rebounce in the economy. 
  2. European markets closed in the red. They lost around 0.5%
  3. Today morning, most of the Asian markets are off and SGX suggests that we will have a gap up of 100+ points.
  1. This is disturbing now. FII are selling continuously. Yesterday again they sold for 700+cr and DII bought for 409cr.
  2. Hopefully, today will be the day when FII will change their mind and go long.
  1. Crude is at $42. Crude has bounced back after the Airline industry demand had gone up.
  2. $ is trading at Rs 73.76
  1. Nifty has highest OI at 11400ce and 11000pe. 
  2. Banknifty has highest OI at 22000ce and 21000pe
  3. MAx pain of nifty is at 11200 and 21400 in the banknifty. This will change after market opens with a gap.
  4. Nifty may range from 11250 to 11350
  5. Banknifty may range from 21500 to 22000