Trade setup for 18th November



 Looks like there is no stopping for the liquidity. It is flowing like water. Yesterday it was volatile as nifty fell close to 1% from its highs and recovered in the second half. The major contributors were the banks. Reliance opened 4% higher with the news of acquiring urbanladder, but closed in the red. 

Now markets may consolidate. But banks still have a large room and there can be more money flowing to the banks as banknifty is still not at an all-time high. All other major indices have gone up. 

RBI has placed laxmi vilas bank on moratorium and withdrawal of money has been capped. So the moral is always keep your money in PSU banks and always take a loan from private banks. So today the banknifty might be in some pressure due to this. Also, the LVB and DBS merger may happen and shareholders of LVB may not get anything. 

The world market is slightly soft with the worries of another lockdown. The cases in the US and Europe is slightly rising. At the same time, looks like we may have made a breakthrough in the vaccine as well. It will be just a matter of time that the vaccine will be available. Yesterday Moderna share price fell and it closed in the red.

MY TRADES

  1. My butterflies and strangles are in good shape. All are in profit. I will probably add more to these strategies today and average it.
  2. I will be converting strangles to spreads to release the margins.
  3. Lets see if I can get some intraday trades. 
INTERNATIONAL MARKET
  1. The US markets fell in the open and covered some of its loss. The US markets closed in the red. But this is fine as even US markets have rallied and is slightly overstretched.
  2. European markets also closed in the red.
  3. Today morning the Asian markets are also in the red. SGX suggests a flat opening. Its scary to buy at these levels. Let the market retrace a little. Probably retailers will then get the confidence to enter.
FII AND DII
  1. Looks like FII have become mad in Indian market. Yesterday again they bought for 5000cr and DII sold for 3800cr.
  2. Now it is scary to enter as you never know when FII will start selling. So there should be some retraement for fresh entry.
CRUDE AND $
  1. Crude is at $43.55
  2. $ is at Rs74


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