Trade setup for 10th Sept

Yesterday was another confusing day. Nifty fell in the morning and in the second half it did have a nice rally upside and gave up most of its losses. Banknifty is still weak. It is again the Reliance which came to the rescue. Now there are new investors for its retail biz. Now the mother market is again rallying. Yesterday the techs came back strongly. Apple, Tesla were all up and dow did gain 1.5%. 

Today is weekly expiry and there might be short covering in the second half. But the overall texture of the markets is weak. We have a supreme court verdict today. Banknifty has fallen approximately 3000 in this series. So most probably the verdict is factored in but again you will have to wait for the confirmation. 


  1. I closed most of my butterflies yesterday and converted them to iron condor as I had got the maximum profit which I was supposed to get in those strategies. 
  2. Yesterday I did a future trade which I even shared in the telegram channel and ended with a good profit. 
  3. For today's expiry, I have sold more puts than calls as I am expecting a short-covering rally.
  1. The dow came out strongly yesterday. The techs have come back. Tesla gained around 10%. Apple gained around 4%. We need more confirmation if this is the pullback or more fall will be there in the future.
  2. European markets were also in the green. Now all eyes are on the ECB on the interest rates.
  3. Asian markets are in the green and SGX is flat. 
  1. FII have sold 959cr and DII have sold 263cr
  2. Today will be a crucial day. I will change my view if the shorts are not covered today. 
  1. Crude has fallen again. Now it is close to $40. I don't think the consumption is going down. Probably the production is getting hiked. 
  2. $ is trading at Rs 73.5
  1. BankNifty has highest OI at 23000ce and 22000pe
  2. Nifty has the highest OI at 11400ce and 11200pe
  3. The max pain of nifty is at 11300 and that of banknifty is at 22400
  4. Nifty may range from 11350 to 11200
  5. Banknifty may range from 22000 to 23000
  6. I am expecting a short covering in the second half. 
    1. I will create more put spreads.
    2. If nifty starts in the green then I will creat an ironfly at 11350