Trade setup for 3rd December

 Yesterday was another volatile Wednesday. Nifty shot up then there was selling which took nifty to the day's low. Then there was aggressive buying which again took nifty to day's high. $ index is at 91 which is very good for the emerging markets. Looks like everyone is waiting for a correction to enter. Markets do not behave like what everyone wants. 

Nikkei, Kospi have all made an all time high. Even our markets are at an all-time high. Banknifty index still has room for upside but there is some selling in the kotak, hdfc, bajfin as MSCI rebalancing is over. 

Today is expiry and we may have a mild trending day on upside or downside. 

Salesforce has bought slack for $27m. So this was buzzing news in the US markets.

There seems to be a pause in the market. Not sure if this is a slight gap before continuing its upside rally or will we see a sharp correction.


  1. Today will be a light expiry as margins are reduced. There are some alternatives which we are working with the broker to manage the funding which may take shape in some weeks.
  2. I have created a put ratio spread for today's expiry
    1. +1 X 13000pe
    2. -1 X 12950pe
    3. -1 X 12900pe
    4. -1 x 12850pe 
  3. I will short nifty futures if 13200is takenout today as a positional trade.
  1. The US markets closed in the flat zone.
  2. European markets were also flat except for FTSE as the US approved Pfizer vaccine.
  3. Today morning the Asian markets are in flat to positive. 
  4. SGX suggests a flat start. Let's see if we can take it higher from here.
  1. Yesterday FII were silent compared to its last month performance. They bought for 357cr and DII sold for 1600cr. I wonder who bought to take the nifty to the highest point of the day. retailers??
  2. Do not short the markets till FII start selling. 
  1. Highest OI for nifty is in 13000pe and 13200ce
  2. Highest OI for banknifty is in 30000ce and 29000pe
  3. Nifty maxpain is at 13050 and that of banknifty is at 29500
  4. Today nifty may range from 13000 to 13200
  5. Banknifty may range from 29000 to 30000