Trade setup for 19th Jan

 Yesterday was a very volatile session. Markets fell 150 points, then it recovered 100 points then again there was a second round of selling and markets fell another 150 points to close the day at the lowest point.  Similarly in banknifty as well, even banknifty was very volatile and finally closed in the red at the day's low. Now the markets have turned to be a buy on the dip to sell on the rally. Still, I am not convinced in the fall because the vix has shot up and is above 25 and FII are not selling. This might be a routine profit booking. I would wait for 200 point fall if it happens to give me a confirmation that the trend has reversed before shorting.

Yesterday, it was only reliance and HDFC bank which supported the market. HDFC had a good results, so it shot up. But it went up just 1% even after such a good result.

Yesterday, bajaj twins, sun pharma, tata motors, metals were some of the losers. 

I don't think 14k would be broken on the lower side. If 14k is broken and if FII turns sellers then I will go shorting aggressively.

The US markets were closed yesterday. The US is getting set to welcome its new president tomorrow. The republicans may not do any mischief as the entire city would be guarded by the army.

Janet yellen who will be the next treasurer in the new govt told that govt should act big in terms of stimulus. This has boosted the other markets and you can see SGX at 100 points up.

It will be interesting to see the IPO now. I am not applying for anymore IPO if it turns to be a downfall market. IRFS, Indigo paints, barbeque nation, LIC are some of the IPO which are in line. 

For new traders, I would suggest you to stay away from this volatile market. It is very risky as VIX is hight and you might be trapped on both sides.


  1. My algo trading is going on wonderfully. In 30,000 capital I have already earned 45,000 using algo.I am still fine-tuning it to take care of the negative side. For now, it is working fine. Let's see how far I can go. I will gradually scale my capital in these going forward. 
  2. I had sold futures some days back. I was sitting on a loss and now I am in profit. I have closed half of the volumes and carrying other half. Lets see if markets close in red today which may not happen.
  3. The option trades are all in good shape.
  4. I have not taken any new position yesterday as it was volatile. There was some intraday trades which I did and closed it with small profit.
  1. Janet yellen statement has taken the world markets higher. Lets see how it will go on.
  2. Europe closed in mild green. 
  3. Today morning the Asian markets are in green. SGX suggests a 100 point gap.
  1. FII bought for 650cr and DII sold for 42cr. With net buying still markets have fallen so much. 
  2. Still, I believe we are in bull market as long as these people are buyers. So don't short so soon.