Trade setup for 17th December


 

Yesterday the rally in the markets continued. Nifty shot up 100 points, but the banknifty did not perform despite hdfcbank rallying. HDFC twins and bajaj twins are rallying on the front. Bajaj finance again shot up after it rallied 5% the day before yesterday. Now nifty is at an all-time high.

Yesterday there was a fed met and they kept the rates unchanged and they told that they will be continuing the bond-buying at the current rate. Fed has raised its economic outlook and forecasts the unemployment rate falling in 2021

The US Congress is inching towards a $900 billion stimulus. 

The cabinet has approved to auction some 4g spectrum. The cabinet has also approved sugar export subsidy worth 3500cr

Sebi tweaks norms for insolvency companies and there is some stricter rules for mutual funds.

Now auto companies are increasing their prices. Auto companies have already rallied. Is this price hike priced in the stock price or is there more to go in these stocks.

Today is expiry and markets will be volatile as usual. 

MY TRADES

  1. I had to do some adjustments to my butterfly. Now, most of the positions are in good shape.
  2. I am still carrying my nifty short from day before yesterday. I have not added any hedge for this as it was only 1 lot. I may average that tomorrow as I will be busy with expiry trades today.  Let's see how it goes. 
  3. I executed huge tron condor yesterday as I had some margins left.
  4. The bajaj finance trade is is profit which I had shared yesterday in the blog.
INTERNATIONAL MARKETS

  1. US was flat. Fed meeting did not do much for the US markets. 
  2. Europe was in green as some deal might be possible over the brexit.
  3. Today Asian markets are flat. SGX suggests a flat start. Lets see 13700 will be taken out or not.
FII AND DII
  1. FII are gradually reducing the volume. Yesterday it was 1980cr of buying and DII sold for 1700cr
  2. Do not even think of shorting till this kind of volume flows. I took the risk of shorting with 1 lot. :)
CRUDE AND $
  1. Crude is at $51. $ index is at 90.
  2. $ is at Rs 74
EXPIRY SETUP
  1. Nifty has highest OI at 13800ce and 13600pe
  2. Banknifty has highest OI at 31k ce and 30k pe
  3. nifty has maxpain at 30600 and that of banknifty is at 30700
  4. nifty may range from 13600 to 13700
  5. banknifty may range form 30k to 31k

 

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