Trade setup for 14th September


 

  1. On Friday, the markets were flat but it was volatile. There was a banknifty which shot up in the last hour. This might be for the covering over the weekend. Today we will get confirmation if that was short covering or just a trap to bulls. 
  2. Over the weekend there was a news from SEBI for multicap funds. SEBI told that multicap funds should invest at least 25% in small cap and mid caps. But again they gave some relaxation so now funds may not be in a hurry to buy in small cap and mid caps. The fund managers are now divided over the new SEBI rule. 
  3. Now looks like COVID second wave might come back. Israel is for a second lockdown. The cases in India, US are rising at an alarming rate. There might not be a knee jerk reaction if there is a second lockdown as we had in feb-march. All depends on how the US will react. If they do not lockdown then it does not matter. 
  4. UK GDP which came was good. It was up by 6%.
  5. Reliance is holding the market. Now the fresh investment in its retail is taking it higher. One more investor is looking to invest more than a billion. 
  6. Oracle has won the tik-tok challenge in the US. They won the tik-tok US operations.

MY TRADES

  1. In Reliance, I have done the below trade
    1. 2500ce X -1
    2. 2600ce X 1
  2. I have done put ratio spread for nifty
  3. I have done call ratio spread in banknifty.
  4. The above 2 trades will hedge each other.
INTERNATIONAL MARKETS
  1. The US futures markets are higher. On Friday, the techs fell and now they are showing signs of recovery. 
  2. European markets were flat. 
  3. Today the Asian markets are in the green. SGX suggests that we will open in the green.
FII AND DII
  1. FII have now bought in the cash after days of selling. So this might be short covering which happened in the banknifty in the last hour.
  2. FII have bought for 1175cr and DII sold for 725cr
CRUDE AND $
  1. Crude is at $40
  2. $ is at Rs 73.53

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