Trade setup for 7th Sept

  1. India is the second place in COVID cases today. The cases are rising at an alarming rate. Coming to markets, there is a huge selloff in the 2nd half of Friday. Even in the US the techs which were leading the markets are seeing sell-off. It might be a profit booking or a fresh selloff.
  2. Today the metros are opening in the major cities. There are precautions taken but the cases are not reducing which is an alarming situation. Not sure what is the status of the vaccine which was in testing some time back. 
  3. Banknifty has been rejected from its 200 DMA. Now that is strong resistance and it has to cross that for fresh move on the upside. 
  4. Today morning the Asian markets opened negative but were slightly recovering. Now again the fresh sell off is seen in there. 
  5. FII and DII have sold on Friday. FII sold for 1888cr and DII sold for 456cr. Usually, DII buys when FII sells so aggressively to balance the market. So DII also selling means there might be some problem. So its better to be cautious. 
  6. We need to see if 11300 will be given today or will that be protected. I have a feeling that 11300-200 will not be given. If that is done then there will be more on the downside.
  7. Crude is at $42 and $ is trading at Rs 73. $ index is at 92.
  8. On the OI side, there is huge OI built up on the CE than the PE. So probably, we may not see a sudden recovery.