Trade setup for 26th October

 


Happy Dushera to all the readers. Hope this festival will bring colours in your life by reducing the evil(loss) and increasing the smile(profit). 

Coming to markets, now we are in a consolidating phase and 12000 looks like a strong resistance. It has been rejected twice. So I believe that it will go down. But we are in a very volatile environment where there is a stimulus pending in the US. Our FM has told that there can be another stimulus if needed and we have the results season going on. So I will change my view if 12000 is broken on the closing. 

The future-Reliance deal put on hold. Amazon has somewhat won the case for the moment. 

RBI governor has been tested positive for covid. 

Kotak bank is planning to take over IndusInd bank. So this can be some news for the banks and the banknifty. Indusind bank has denied it. 

Alibaba CEO jack says that Ant group IPO will be the largest IPO in the history beating Saudi Aramco. 

This week is a week full of earning. Many nifty50 companies are declaring results this week. Today we have kotak bank coming with earnings. 

The Covid cases are surging in the US. 

MY TRADES

  1. I have taken a bearish view as I feel that 12000 will not be broken very soon. I am expecting 11600-700 in short term. I would be comfortable buying at these levels. 
  2. I have shorted nifty futures as a hedge for my underlying portfolio.
  3. I have executed the below strategy in nifty 
    1. +1 X 12000ce
    2. -1 X 12050ce
    3. -1 X 12100ce
    4. -1 X 12150ce
  4. For kotak I am planning to do the below strategy 
    1. +2x  26NOV2020  1360PE 
    2. -1x  26NOV2020  1400PE 
    3. -2x  26NOV2020  1500CE
    4. -2x  26NOV2020  1280PE
    5. -1x  26NOV2020  1380CE
    6. -1x  26NOV2020  1380PE
INTERNATIONAL MARKET
  1. There is no point in discussing the US markets. It is meant to be volatile for the coming days. 
  2. European markets closed in the green. 
  3. Today morning the Asian markets are flat. SGX suggests a flat opening.
CRUDE AND $
  1. Yesterday the Saudi market TASI fell 4% as crude prices fell.
  2. Now crude is trading $41.7
  3. $ is at Rs73.6
FII AND DII
  1. FII have again bought for 900cr and DII have sold for 900cr.
  2. DII selling gives me a hint that they are preparing themself for the fall and collecting funds. Now FII has bought too much. They will start selling anytime. So the risk-reward may not be in the favour of the bulls. 

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