Trade setup for 9th September


 

  1. Yesterday was another blood bath in the US. The tech stocks which rallied like there was no tomorrow are now correcting. Tesla lost 20%. Apple lost 6%. It is obvious that when the mother market falls, the small markets will be crushed. 
  2. Yesterday, we saw a huge selloff in our markets as well. The markets were on the sideways. Then there was a huge sell off in the last hour. 
  3. Now the Corona fears are back. The vaccine might not be available until the US election as there was some hurdle from the vaccine by AstraZeneca.
  4. There was a slight air firing in the Indo-China border. The situation did not get escalated but this will add tension in the stock market. 
  5. Nifty 20DMA is getting difficult to capture. Any fresh upmove will happen only when the 20DMA is reached.  Yesterday, we also lost 20DMA in the banknifty. 

MY TRADES

  1. I had some puts which I had sold some time back when the markets were bullish. Now I am running for cover. I am now doing a lot of adjustment trades. 
  2. Vodafone-Idea fell 10%. I am still in minor profit. Probably, the rebranding news did not gel well with the market. Since it is a small amount, I am not bothered by the price movement and I have decided to keep that for the long term. 
  3. I will now trade in the monthly expiry as weekly seems to be slightly dangerous.
INTERNATIONAL MARKET
  1. The US markets are now losing after rallying too much in short time. Now dow is 10% away from its all-time high. It was less than 3% a few days back. Nasdaq fell 4%. Dow fell 3%. S&P fell for 3 consecutive days. Nasdaq has now become bearish and sell on rally from buy on dips.
  2. The European market also corrected badly. Even they fell close to 1-2%
  3. Today morning the Asian markets are bad. SGX says that we will open with a gap down.
CRUDE AND $
  1. Crude fell 7% overnight. Now it is below $40
  2. $ is at Rs 73.59
FII AND DII
  1. FII sold for 1000+cr and DII bought for 620cr.
  2. When both were selling few days back, I did anticipate this situation which happened. 


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