Trade setup for 9th November



 Finally, after all the drama it is Biden who will be the next US president. Now the world markets seem to be on fire. Today we might even make an all-time high. There is a huge liquidity flow into the markets. FII is pumping money like never before. We also have the Bihar elections result in tomorrow. It looks like the MGB might win as per exit polls. 

Coming to markets, we are just rallying like there is no tomorrow. Within 1 week we have come from 11500 to 12400. I thought that all-time high will take some time but it looks like it will happen today itself. The most important question is what next?? Will this uptrend continue. For now, there is no major known reason to fall. I thought that Trump would win and the markets will get the trigger to fall but I was totally wrong. Biden has won and markets have shot up sharply. Considering the liquidity which is flowing, I don't think that we will fall majorly from here. The payroll data in the US which came on Friday was also good. 

Usually, the bull run peaks out at good news. The US markets and Indian markets have rallied from last week and probably the markets knew that the resulting uncertainty would be resolved soon. So we may not rally much from here and there might be consolidation for some time.

The MSCI money which was pending has almost come. Out of 2 billion, 1.8 has already come in the last week. 

MY TRADES

  1. I executed some short strangles in nifty. It looks like now I need to do some minor adjustments to them as 1 leg will be in danger today. 
  2. Some days back I had executed some call ratio spreads in many stocks like kotakbank, Axisbank. Some of them are in profit and some are in loss. I will now have to do a lot of adjustments here also.
INTERNATIONAL MARKETS
  1. The world is in deep green. Now most of the known uncertainty, bad news are all behind us.
  2. US markets are also rallying as they had a major event. Dow futures is up around 300 points.
  3. European markets were slightly low. The closed in mild red.
  4. Today morning the Asian markets are in the green. SGX is suggesting another gap up.
FII AND DII
  1. FII have pumped close to 4800cr and DII have sold for 3000cr
CRUDE AND $
  1. Crude is at $40.47.  Again it is above $40
  2. $ is at  74.2

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