Trade setup for 26th November

 Yesterday was a sharp pullback day. We need more confirmation if this was a start of a correction or profit booking ahead of expiry. This is the problem with these continuous rallies without consolidation. Nifty has moved non-stop for more than 1000 points and whenever there is a pullback or correction it will be sharp. You can see a major fall in a small time frame. Yesterday nifty fell more than 300 points from day's high and banknifty fell more than 1000 points from day's high. The stocks which had gone up saw a fall. Kotakbank, axis bank, autos were some of the losers. 

Markets gapped up in the morning and from there it fell drastically. Thre was a mild recovery in between but that did not sustain.

Even the dow jones came below 30000, Nifty came below 13000 and banknifty which did go above 30000 but that did not sustain and is now close to 29000.

The techs are rallying in the US and Nasdaq did make a record close yesterday. 

Now many companies and countries have a breakthrough in the vaccine and it looks like we are at the end of the tunnel and there might be some vaccine update soon. 

SEBI has removed the increase in the margin requirement for non FNO stocks. So this is a good move and traders can now pay only 10-20% only and not 40%. 


  1. Yesterday I did have some relief as some of my trades which were in danger were in good shape. 
  2. Today I will be busy in expiry trades. Some of my adjustment trades are in mild danger and I may have to do a lot of adjustment for that today.
  1. US markets closed in the red and dow is below 30k. Nasdaq did close in the green.
  2. European markets closed in the flat zone.
  3. Today morning the Asian markets are flat to positive. SGX suggests a gap up of 60 points.
  1. Yesterday there was no activity by FII in the cash market. They bought for only 24 cr. 
  2. DII sold for 1800cr.
  3. However, in FNO, FII closed some of their short positions and added more to their shorts. So now the longs have fallen from 69% to 64%
  1. Now 13000 is strong resistance and I don't think it will be breached today and for some time.
  2. Nifty has the highest OI at 130000ce and 12800pe.
  3. Banknifty has the highest OI at 30000ce and 29000pe
  4. Nifty maxpain is at 12800 and that of banknifty is at 29200