Trade setup for 27th October

 As expected 12000 has been rejected. I did mention this clearly that "what never goes down just goes down". It did behave like an algorithmic play. Yesterday nifty fell 150+ points and banknifty fell close to 400 points. The major contributor was Reliance. The stock had rallied like a rocket from 1000 to 2400 and now it is challenging 2000. Yesterday it fell by 4%. Maybe due to fallout of the future deal or may be profit booking. Now the Carona cases are seen rising in the US and Europe. Some parts of Europe have implemented lockdown and restriction. Donald Trump has tweeted that oppositions are using carona to fight elections and then came the relief and the US futures are in the green today.

Rajiv bajaj told that the auto sales were not good in the festival season. So the auto companies fell drastically. Bajaj fell close to 3%

Now everything seems to be collapsing. Banks, metals, Autos, pharma. This week is a crucial week as we may swing in any direction. 

Today you have Airtel and Tata motors coming with results. 


  1. I did carry some future short in nifty. I closed half of it yesterday in profit to mitigate the risk. Will close the rest today depending on the situation. 
  2. I have taken various stock option strategies for November month as the premium seems to be good and there will be immediate IV crash once the election is over in some days.
  3. It will be difficult to explain all here. I will put one trade here which I did
    1. +1 X Reliance 2200 ce
    2. -3 X Reliance 2300 ce   both nov
  4. I have executed the butterfly for this week expiry
  1. The US markets fell drastically. Dow fell 700 points and nasdaq fell almost 200 points.
  2. European markets also fell close to 1%
  3. Today morning the Asian markets are in red. SGX suggests that we will open in the green. Let's see if the green will be sold into or will there be covering.
  1. $ is trading at Rs73.85
  2. Crude is at $40.68. Its good as long as it is above $40 which is good for India and also shows that there is consumption. It will be a problem if it comes below $40
  1. Yesterday FII sold 200 cr and DII sold for close to 1000cr. This selling by DII is giving me some kind of a hint that we may go more lower from here.