Trade setup for 20th October



 Yesterday was a massive comeback for the banknifty. Bankifty shot up 700 points. It is now comfortably above the 200 DMA. It was nifty which did not run like banknifty. There were HDFC bank results over the weekend and we expected the banknifty to be from HDFC bank. But that did not happen. It was from ICICI and Axis. HDFC bank did open in the green but closed almost at flat. Banknifty has covered what it lost on this Thursday in just 2 sessions. After the market hours, there was news that LIC has hiked its stake in the Kotak Mahindra bank. So today this might be in focus. Yesterday even India VIX shot up. Now it is around 22 which is pretty high. I don't think VIX will fall till this yearend. So be prepared for these kinds of moves. 

One day we will shoot like rocket and the next day we fall like stone. Today we may fall as per global cues. The US markets have fallen and obviously all the world follows them. I am not surprised by this volatility due to the event. 

Now the US stock market is standing on the stimulus. Nancy Pelosi has given a deadline of Tuesday for finalizing the stimulus. If that happens then that can be the trigger for the markets to inch higher.

In India, the Finance minister has told that there can be further stimulus.

ACC, HDFC life has come out with earning yesterday and it has beaten the expectation.

Today we have HUL coming out with numbers. 

Now we need some strong trigger to take the market higher. Most of the good news has been factored into the market. The market may consolidate for some time as there has been a strong bull run. So 12000 short straddle may not be a bad idea. 

MY TRADES

  1. The Wipro and Infosys earning trade which I did is performing well. I hope to get around 1lak profit in both. The same strategy I did in last quarter and I lost and this time it has worked. Thats how stock market works :)
  2. I have executed the below strategy for november series
    1. -1 X 12000ce
    2. -1 X 12000pe
  3. I have executed the below butterfly strategy for all of my clients. 
    1. +1 X 11800ce
    2. -5 X 11900ce
    3. +4 X 12000ce
    4. +1 X 11700pe
    5. -5 X 11600pe
    6. +4 X 11500pe
INTERNATIONAL MARKET
  1. The US markets fell yesterday. Dow lost 400 points and nasdaq lost 190 points and closed for 5th consecutive day.
  2. European markets also closed in the red. 
  3. Today morning the Asian markets are in the red and SGX suggests that we will open in the red. 
FII AND DII
  1. Yesterday FII ended buying and they have bought for 1656cr and DII have sold for 1621cr.
CRUDE AND $
  1. Crude is falling and it has fallen for 4 consecutive days. It is not at $42.25
  2. $ is at Rs 73.37

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