Trade setup for 22nd October



 Frankly, September and October month has been more volatile than march, April and may which were peak covid times. 

Yesterday it was a very volatile Wednesday. Nifty gapped up and went to 12000. Then it fell to 11800 and then there was a sharp recovery to 11950. Most of the traders SL was hit. It's very difficult to trade in these environments. 

Banknifty was swinging like anything. It was up by 500 points. Then it fell by 700 points and then again recovered 500 points. 

The dips were bought. Now 12000 is acting as a strong resistance. It has tried to cross it twice and failed. Now will there be a third attempt or is this a double top? I feel that the 12000 will not be crossed easily and it might take time. If it breaks 12000 then we will make an all-time high soon, else we may goto 11600 again.

Govt has given 3700cr festival bonus to all central govt employees. 

Today we have results from biocon, Asian paints, bajaj auto. 

Yesterday ultratech and bajfinance came out with their results and both of them were good. As I told before, this quarter results will be good as the expectation is bad. Even slight improvement will give a sentiment boost. We are in the bull market and in the bull market, bad news gets ignored easily.

MY TRADES

  1. Most of my trades are in good shape. Yesterday's volatility did not affect me as I closed some position in the first half.
  2. I did not do much trades yesterday.
  3. My wipro and Infosys earning trades are working well.
INTERNATIONAL MARKET
  1. The US markets rallied as there was a huge hope of stimulus. Now the stimulus talks are getting delayed. So the US markets fell and even the futures are down.
  2. European markets are somewhat stable. They are not dancing like US markets and Indian markets. They have covid cases rising and their markets are falling. 
  3. Today morning the Asian markets are in the red. SGX suggests that we will open in the red. Yesterday night it had again gone close to 12000. Now it is below 11900.
FII AND DII
  1. FII have bought for 2100cr and DII have sold for 1600cr. As of now, this is a piece of good news, as there is no selling from FII. They will not hesitate to sell if there is a piece of small negative news. They have bought for more than 5000 cr in last week.
CRUDE AND $
  1. Crude is now at $41.51. Crude fell 4% in last night. This is good for India as the consumption has improved.
  2. $ is trading at Rs 73.58
EXPIRY TRADES
  1. Nifty has highest OI at 12000 and 11800.
  2. Banknifty has a highest OI at 25000 and 24000
  3. Max pain of nifty is at 11900 and that of banknifty is at 24400
  4. Nifty may range from 11800 to 11950
  5. Banknifty may range from 25000 to 24000


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