Trade setup for 12th Jan

 Now markets are at 14500. It did not touch this figure, but we may do that today. The funny part is banknifty, Reliance is not participating and it has not even broken its march high. If banknifty also participates then nifty might goto 15k. Now the performers are IT and Autos. After TCS results, now there is a huge expectation from Infosys and HCL tech. Yesterday infy shot up 3% and HCL shot up 6%. They are going to announce the results this week. 

In autos, tata motors are flying. Its JLR sales were good and there is a rumour that it collaborates with Tesla. It went into temporary freeze. In yesterday's ADR, it shot up 16%. So looks like there are more legs to the rally. This is a high beta stock. Trading this is very dangerous. I have invested in tata motors stock and I am enjoying the rally. I am scared to trade in FNO in this counter. Now all the analysts who told that Tata motors will goto single digit are now giving a buy calls.

Now it looks like the markets look like overbought. Yesterday the $index shot up and is above 90. This means that the FII should pump more to buy in India. The advance-decline was in favour of decline. Nifty shot only because of some IT, tata motors and a few other autos. It's very risky to go long now. At the same time, it is scary to go short now.

Crude is now at $55 per barrel. Increasing crude price is actually bad for India. This is because Saudi has voluntarily cut production.

India vix surges 8% when nifty shot 100+points

RBI has decided to withdraw 2lak cr from the market in an action basis which means that the rate of interest would increase. This makes it difficult for nbfc to get access to funds. So all the NBFC like bajfin were in pressure yesterday. 

Vaccine cost for 3cr frontline workers will be taken by the central govt. 

Now you can assume that the covid fears are totally out and from now the company performance and macros will take over. We are rallying because of liquidity gush. The markets will not fall till there is no trigger. It won't fall just because it is overbought. Wait for the trigger and when markets start falling for the trigger, the fall will be sharp. Not sure what the trigger will be. 


  1. I have taken a risk of shorting the nifty futures in this market. Its small quantity, so I did not do any hedging. Will be having a strict SL for this trade.
  2. I did not expect this movement this week. Some of my option trades are in danger. Let's see how things go for this week.
  3. I will be doing a infy and hcl tech earning trade today. Let's see how it goes. I will be sharing that in my social media channels.
  1. US closes in red. Nasdaq fell as FAANG fell.
  2. Europe closed in red. The major indices fell more than 1%
  3. Today morning the asian markets are in flat zone. SGX suggests a flat start. 
  1. FII and DII are again back from new year vacation. Friday they bought for 6k cr in a single day in cash. Yesterday they bought for 3k cr. 
  2. Dont think of markets collapsing till this kind of money flow continues.