Trade setup for 21st september

 Friday was a highly volatile day especially in the banknifty. In a 5 min candle, banknifty fell 500points and nifty fell close to 100points. Banknifty came below 22000, which was powerful support and there was close to 300 point recovery in the last hour. The main culprit was HDFC bank and Kotak bank which was sold aggressively.

We are now in the expiry week which can be very volatile. This Thursday we have the interest on interest case hearing at the supreme court. There is a huge selling in banknifty in this month. Again 22000 is the strong support on the closing basis. 

The tech stocks in the US are correcting after the massive move they made. But our Reliance which has shot up has not made any correction. So that might be in focus. The reason why I am concentrating on Reliance is that if that corrects then that will bring nifty lower.

We are in a consolidation phase and VIX is also at 20. We had a huge rally both up and down from the last few months. So I assume that we will consolidate for a few more months from now.


  1. I have bought nifty and banknifty futures on Friday after the massive fall in these indices. 
  2. I have executed the below strategy for the December month
    1. sell 11500ce
    2. sell 11500pe
    3. buy 12000ce
    4. buy 11500pe
  3. I have executed butterfly and iron condors for this week expiry.
  1. The US markets were weak on Friday. 
  2. Finally, Oracle has made a deal with the TikTok. So very soon we can expect it to be back in India.
  3. European markets are also in the red. 
  4. Today morning the Asian markets are in flat zone and SGX suggests a flat to negative.
  1. FII ended the day with buying. They bought for 200cr 
  2. DII sold for 100cr. 
  3. FII are long in the futures.
  1. Crude is at $43.17
  2. $ is at Rs 73.43