Trade setup for 31st December 2020

 Happy new year to all my blog viewers. Finally, we are on the last day of the year and this happens to be an expiry day. This year has been a massive year where we have seen the mother of all bear markets and at the same time we have seen the mother of all bull markets as well. This year will be remembered for a very very long time. Hope next year solves most of the problems that were caused due to covid and the pandemic will be defeated soon.

Coming to markets, nifty almost kissed 14000 and fell back slightly. Looks like today we might hit that 14000 mark. But this rally is slightly overstretched than it should have been. But it's dangerous to short now as well. FII are not in the mood to go on a vacation. 

It will be interesting to see if profit booking kicks in or will the buying continue. Yesterday's low will be a support and probably 14050 will be the resistance. If that is taken out then the rally will continue in the direction. So these 2 are the points which I will be keenly watching.

UK govt approves the astrazeneca drug. Now these kind of news will not be a game changing news as it is expected. Now there will be more and more countries which will approve these drugs and you can see the associated companies rally.


  1. I had been working on a new intraday model which I implemented yesterday. I was able to make some healthy profit but this can be implemented when the vix shoots significantly.
  2. I had executed some butterflies and they are in good shape for now.
  3. The bajajfinance trade which I had done some time back is in good profit.
  1. Yesterday the world markets are silent. Nothing much happening in the world marketss.
  2. The European markets closed in the red.
  3. Today most of the world markets are on leave due to new year. SGX is also suggesting a flat start. It looks like 14000 should be taken out today.
  1. Crude is at $51
  2. $ is at Rs 74
  3. The important thing is that $ index is at 89.5. This is good for emerging markets like India.
  1. FII bought for 1800cr and DII sold for 587cr.
  2. Looks like DII are fed up of selling but FII are not fed up buying.
Expiry setup
  1. Nifty has a highest OI at 14000ce and 13900pe
  2. Banknifty has a highest OI at 31000pe and 31500ce
  3. Nifty may range from 14050 to 13900
  4. Banknifty may range from 31k to 31500
  5. Nifty max pain is at 13850 and that of banknifty is at 31100