Trade setup for 7th October



  1. In September month, all the bulls were slaughtered. Now, in October all the bears are getting slaughtered. The market seems to be not bothered about any news. 
  2. In the US market, they were excited about the stimulus and Trump has now stopped the negotiations of the economic stimulus. S&P fell immediately and dow jones closed in the red. 
  3. Trump has been released from the hospital and came to the white house. 
  4. Powell has warned about weak recovery if there is no stimulus. 
  5. Now the earning seasons begin and today we have TCS coming out with its results. It has already shot up due to the buyback news. I thought of doing an earning trade but stopped myself after the buyback news got associated with the company.
  6. Reliance has got one more new investor to its retail arm. Now, this has become the norm. Everyday someone or the other is investing in this. Reliance is not reacting to this news nowadays as it has rallied a lot. But it is not falling heavily as well. This phase is called consolidation which will be there for some more time.
  7. Trump has put new restrictions on H1B which might be an issue for the IT companies. 
  8. The GST council has failed to reach a consensus on compensating states. 
  9. We are at the 50% retracement in the banknifty from its recent fall. Lets see if there will be rejection or will we break out. 

MY TRADES

  1. Markets are very very volatile. It has become very difficult to decide the direction of the markets. 10 days back, the markets gave a different picture, and today it's giving a different picture. I am keeping my volumes low. I have also decided not to use the entire leverage which the brokers provide on expiry trades as well.
  2. I have few butterflies for which I am doing some adjustments as nifty has shot too much in this week. 
  3. Let's see if TCS shoots today after the results. I might do some trade if I get an opportunity. Will share in my social media pages.
  4. I have added more to the 11500 iron fly which I took sometime back in December series. 
INTERNATIONAL MARKET
  1. Everything was going well till Trump came and tweeted that he is rejecting the stimulus request. 
  2. As I told, expect these for next few months as one tweet will change the game.
  3. Dow fell 350 points and S&P fell after the news broke.
  4. European markets closed higher.
  5. Today Asian markets have opened flat. SGX suggests that we will open slightly positively. 
FII AND DII
  1. FII has bought for 1101cr in the cash market and DII has sold for 934cr. 
  2. FII is now continuously buying in this month. 
CRUDE AND $
  1. Crude is at $41.88
  2. $ is at Rs 73.35

 

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