Trade setup for 13th October


 

Now the markets seems to be cooling off. Yesterday the markets shot up but cooled off. Banknifty was up by 300 points but closed in the red. Nifty again went to 12000 and came back close to 11900. There was some profit booking at 12000 which was expected. This is indeed the shortest recession history has seen. In March and April, the market fell from 12000 to 7500 and within 6 months it is back to 12000. 

In January, I had executed 12000 short straddle. Then in april, may it went to 7500 where I had to do huge adjustment. Then markets recovered and is again back to 12000. Currently, I am sitting with huge profits. I will close the trade if 12000 is crossed again.

Yesterday, there was a press conference from the finance minister. There were some benefits given to the employees to improve the spending. Markets were flat till the meeting happened and then markets fell. Probably, markets expected some massive stimulus.

There was macro data which came and it was bad. CPI was at 7.24%. Growth number in IIP was at -8%. So this will have some impact today. I dont think 12000 can be crossed with ease. I feel breaking 12000 in this month may also be difficult. 

The US markets shot up as Apple was coming out with a new phone. Apple shot up 5%. Amazon also contributed for the rally. They have their own news like election, stimulus etc.

MY TRADES

  1. I did an earning trade-in Wipro yesterday. I will do adjustments if needed depending on the movement.
    1. +2 X 380ce
    2. -1 X 370ce
    3. -2 X 410ce
    4. -2 X 325pe
  2. In index I did the below trade
    1. 12000ce X +1
    2. 12100ce X -1
    3. 12150ce X -1
    4. 12200ce X -1
    5. 12500ce X +2
  3. I have added a huge number of trades in the December expiry as an adjustment trade 
INTERNATIONAL MARKET
  1. The US markets shot up due to apple's new 5g phone. Dow, Nasdaq and S&P shot up. Obviously nasdaq was the major gainer as the IT has shot up.
  2. European markets were mixed. FTSE was in red while CAC and DAX ended in the green.
  3. Today morning the US futures are in mild red. The asian markets are also in the red. SGX suggests that we will have a mild red to start with.
CRUDE AND $
  1. Crude is at $41.75. The aviation sector is opening up and crude consumption will gradually improve.
  2. $ is at Rs 73.27
FII AND DII
  1. FII have bought for 600cr and DII have sold for 1000cr.
  2. DII selling sometimes signifies that they are keeping funds ready to buy if FII starts selling. This is just a probability and not a certainity. 

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