Trade setup for 23rd Dec

 Now the volatility has kicked in. Yesterday markets were very volatile and it was shifting from +ve to -ve regularly. But in the second half, there was a wonderful recovery and markets recovered around 140 points. Surprisingly, the UK markets also closed in the green where the new covid virus fears emerged. Let's see if 13500 will be taken out today. If 13500 is convincingly taken out then we can assume that the day before yesterday fall was probably due to the exchange fault. 

Astrazenaka has told that it's now virus is good enough for the new virus as well.

There is no problem with the liquidity as well. FII has pumped 1000cr yesterday. 

But the real macro data shows a different story. Macro data shows that there is a slowdown in consumption. 

IT was in a massive bull market. There are reports that there will be a new gush of outsourcing once the covid is over. Now it will be driven by the cloud computing side.

I feel that 13200 should not be breached for this week and this month. 

Dow futures have fallen when Trump threatens to veto the stimulus. 

Reliance is not participating for a long time. Maybe the next leg might be driven by the banks and Reliance. 

India vix fell 5% immediately after markets started to rise. 


  1. Yesterday I did a intra futures trade and I bought Indigo and closed with a profit of 7000. I would have made 25k if I had kept till the end of the day. Anyway, I am happy with the profit for a day.
  2. I have invested in some stocks for building a long term portfolio.
  3. I had done huge adjustment for my option positions as markets fell drastically day before yesterday. Now those adjustments are in a problem. So I will have to do some firefighting skills now. I will now be trading with a strict stop loss as markets are moving either side.
  1. US markets closed in the red. Nasdaq, however, closed in the green as IT stocks are rallying.  Now Trump threatening may not have a major impact on the markets. 
  2. Bank of japan has forecasted a lower growth so nikkei is off lows today.
  3. Europe closed in the green.
  4. Today morning the asian markets are in mild red. SGX suggests a flat to negative start.
  1. FII are back again, but now they have come down from 3k to 1k cr of buying. Lets see if they scale up from now or will they go low for the rest of the series.
  2. DII sold for 661cr.
  1. Crude is now at $49 as OPEC decided to scale up production.
  2. $ is at Rs 73.84