Trade setup for 28th September



  1.  Today there is an India wide bandh for the farmer's bill that is passed. This might not be a major incident for the markets. The alkali dal which was a very old ally of NDA has quit NDA. So NDA has lost PDP, Akali and shiv sena after the formation of the govt. So It will be interesting how the next loksabha election will turn. 
  2. Coming to markets, there is huge volatility in the markets. Markets were falling continuously and now it looks like it will rise continuously. Last month was the worst month for me as I could not manage the volatility. 
  3. Maharashtra has banned the sale of loose cigarette. So you can expect some pressure on ITC, godfrey etc.
  4. West Bengal may allow theatres to operate from October 1st. So stocks like PVR, Inox might be in focus today.
  5. $ index is higher. It is now at 94.5 now which is very high. So that may be bad news for India. 
  6. We have bounced from the 200 DMA. Usually, there will be a bounce from these major supports/ resistance. The question is will it be taken in the future or is this bounce reliable? I would wait till the 38.2% retracement is crossed to be bullish which might happen today. The FII selling is another issue which is not supporting the longs. 
  7. Now all eyes on the $2.4 trillion package which will come in the next week in the US.
  8. Today you have the interest on interest case. Banknifty has fallen a lot. So there might not be more fall even if the case does not go in their favour. Lets see.

MY TRADES

  1. I am not having many volumes deployed now. I am waiting for the volatility to cool as I am fearing that I will be trapped on both sides. 
  2. I will deploy some butterfly's today and some put spreads.
INTERNATIONAL MARKET
  1. The US markets are now shooting up. They will be more volatile as the election heat will be there for the next few months. Whenever US dances, even we dance to its tunes.
  2. On Friday, the US markets shot up more than a percent. The techs are roaring again. Nasdaq was up more than 2%.
  3. European markets were flat to negative. There was nothing special in the European markets. 
  4. Today morning the asian markets are in the green. SGX says that we will open in the green. 
CRUDE AND $
  1. Crude is at $41.8
  2. $ is at Rs 73.61
FII AND DII
  1. On Friday, the FII have sold for 2080cr and DII have bought for 2070cr.
  2. FII are selling heavily. They have sold for 10000cr in last week which is too much for such small time. They are using every rise to sell into the market.

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