Trade setup for 13th November



Today is Dhanteras and I wish all a Happy Dhanteras and Happy Diwali. 

I will be starting professional youtube videos on trading staring tomorrow.  I will also be starting training workshops soon as I had paused due to some personal emergencies. 

Yesterday was a good expiry. I was able to make a profit of 4lak for the day but I had to end the week in the red as the strong up move which I didn't expect gave me some loss. 

Finally, nifty closed in the red after 8 days of 1000 point rally. Banknifty lost 550 points after 20% rally. Now the question is whether the markets will continue to fall or was this just a mild profit booking correction. There will be some consolidation for a few days. The markets are still in the grip of the bulls. FII is pumping money heavily into the market. So do not short the market now. Markets will give you a clear indication when the time is right for shorting. Now we do not have any major news for the market to continue its rally. So you can trade-in options. Make sure you are 100% hedged because you never know when the covid vaccine will come. The day it comes, it will shoot the market with a huge gap up and that can be painful.  Since it will be given by some US company, there is a massive chance that this news will come during off-market hours and there will be a gap-up.

Yesterday Moody's upgraded India GDP growth and now the markets are down. Wheneven moody upgrades we fall and whenever the downgrade we rise. 

Yesterday the Finance minister gave huge benefits in atmanirbhar 2.0 and 3.0. But there was not much influence on the markets. 

MY TRADES

  1. I was totally wrong in my US election outcome. I thought Trump will come and markets will collapse. Trump did not win and markets rallied like anything. Pfizer vaccine added more fuel to this.
  2. I accepted the verdict early and added more hedges to come out with a minor loss.
  3. Now I will be starting fresh. Will play in monthly or longterm options.
  4. I am planing to do the below strategy for December
    1. +1 X 13000ce
    2. -1 X 13100ce
    3. -1 X 13200ce
    4. -1 X 13300ce
    5. -1 X 13400ce
    6. +3 X 13500ce
INTERNATIONAL MARKETS
  1. Yesterday the world market fell due to the covid fears which is now slightly griping the US markets.
  2. Dow fell 300 odd points and nasdaq also fell close to a percent.
  3. European markets also closed in the red.
  4. Today morning the Asian markets are in the red. SGX suggests a gap down of 100 points.
FII AND DII
  1. FII future positions have seen some unwinding whereas the cash market is still strong. 
  2. Yesterday they added another 1500cr and DII sold for 2200cr.
CRUDE AND $
  1. Crude is at $44
  2. $ is at 74.65

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