Trade setup for 16th October

Yesterday was a complete trap day for me. Infy results were good and ADR suggested that we would open above 12000. The opening did prove that Infy gapped up and nifty was above 12000. Banks were also in the green. It looked like a trending day on the upside. So I did have some positions on the upside. But that was a trap. There was no judgment on the interest on interest cases and there was news that London and France are going on lockdown as cases surge. 

These were just the reasons. Markets had rallied for 10 days. In fact, nifty had closed in the green for 10 days consecutively. A correction was expected but I did not expect a collapse. 

There was a loss in yesterday's expiry trading and lost around 2lak(approximately 2%) of my capital. 

As I told, we are in a very volatile phase. The US stimulus uncertainty, supreme court case uncertainty is taking the market for a toss. One day it is bullish and the very next day it will be bearish. It will be difficult to trade in these conditions. So I have decided to reduce the volume drastically for now. 

Today we have HCL TECH results. Let's see what magic can this do for the IT space today. Yesterday it fell badly with other IT space. 

This weekend we have HDFC bank coming with results. So Monday will be another volatile day. 

India vix is up 10%. 

Yesterday's low 


  1. For the last few weeks, my positional trades were going wrong but expiry day trade used to go well. Yesterday the positional trades gave me wonderful profit but the expiry trade got screwed.
  2.  My Infy and Wipro earning trade went well. I had even shared these trades sometime back. 
  3. I will be executing call ratio spread and put ratio spread for this week with a small volume. I will also be doing some volumes of the butterfly as well.
  4. Let's see if I can design some strategies for HDFC bank results. 
  1. US markets are dancing in full josh. One day there is stimulus talks and markets are up. Then something happens to the talks and markets are down. Then trump gives a hint of stimulus and markets are up. Then there is news that there is no stimulus till elections and again markets are down. Yesterday it opened badly and recovered most of the losses.
  2. Europe closed in the red for second round of restriction in France and London.
  3. Today morning the US futures are in the green and the Asian markets are in the green.
  4. SGX is suggesting a gap up today. 
  1. Crude is at $42.84
  2. $ is at Rs 73.38
  1. Yesterday both FII and DII sold. 
  2. FII sold for 600cr and DII sold for 800cr.