Trade setup for 5th Nov expiry




 US elections in the hang with Biden leading. Trump has approached the courts to stop the counting. Yesterday Trump gave a press meet and induced election uncertainty. As soon as this happened, the markets fell. Banknifty fell 400 points and within 1 hr it recovered the entire fall. It was a very volatile session yesterday. The US markets were expected to shoot if there was a clear winner and the markets were expected to fall if there were any uncertainty but yesterday the US markets shot up with uncertainty. Nasdaq shot up 4% as all the tech stocks shot because Biden was leading and he is considered as pro IT.

Even our markets were very volatile. Nifty and banknifty were all over the place.

Today there is interest on interest case hearing in the court. Probably that can provide a trigger to the banks.

Narendra modi is having a meeting with all top leaders today. Tata, Deepak parekh etc are said to attend the meeting. This may not be a major event.

Cinemas are set to open in Mumbai. This can be good news for stocks like PVR, Inox. So they may rally today.

Yesterday there was a huge buying in Kotak and IndusInd without any news. Seeing the stock movement, it looks like there right be some news around these two. Even Reliance came with a bang. 

Pidilite came out with good numbers yesterday. SBI numbers were also good.

Vix fell both in Indian markets and the US markets.

INTERNATIONAL MARKETS

  1. The US markets have shot irrespective of the election uncertainty. Probably the markets know something for certain.
  2. European market also shot up. Even they gained more than 1.5%
  3. Today morning the Asian markets are also in the green. SGX suggests that we will open with a gap of 150 points.
CRUDE AND $
  1. Crude is hovering around $40. 
  2. $ is at Rs 74
FII AND DII
  1. Yesterday FII bought for 146cr and DII sold for only 8cr.
EXPIRY SETUP
  1. Nifty has highest OI at 12300ce and 11500pe
  2. Banknifty has highest OI at 26000ce and 25000pe. I think 26000 will be taken out in the gap up. Lets see if there will be follow through.
  3. Nifty might range from 12050 to 12180
  4. Banknifty might range from 26000 to 26500


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