Trade setup for 2nd December

 FII were expected to cool down after the MSCI rebalancing but that did not happen yesterday. They have again pumped around 3200+cr. 

$ index is at 2 year low. It's now at 91.

As I told vaccine news is keeping the hope alive. The US markets are expecting a stimulus as well. I feel that the stimulus may not be as big as what the markets are expecting. So probably this might trigger the fall. Why should the stimulus be so high if the recovery has almost done?? 

The US economic data is in line with the expectation. 

Coming to our markets, we are continuing our bull run. 13100 is also conquered. We may consolidate around 13000 for some time. This consolidation is required for further upmove. I will be happy if there is a correction of around 300-400 points as that will give me more conviction to enter. Otherwise, the market should be around 13000 for a very long time, at least for this year. 

The auto sales data which came were below the expectation. So Autos might be in some pressure today except for Tata motors which gave good numbers.

Peak margin did not effect the volumes yesterday. We still can get 4x as per the new rule. Not many intraday traders use more leverage everyday. So now the real effect will be known after all phases are over.


  1. I did some positional trade as I wanted more clarity on peak margins. 
  2. Today is Wednesday and I may not do a mini expiry trade as the peak margin things are not yet clear. So I will do very very small volumes.
  3. I have sold kotakbank futures as I feel that it has overrun.
  4. I have bought small quantity of Reliance, M&M in cash. Cannot hedge in options as its a small quantity which I have invested. I will add more as and when markets fall.

  1. US markets closed in green. Today the futures are in mild red. 
  2. European markets closed in green due to vaccine hope.
  3. Today morning the Asian markets are mildly in the red. SGX shows a flat start.

  1. Again 3000cr pumped by FII and DII sold for 1000cr