Trade setup for 27th Jan

 Markets were on a holiday yesterday due to Republic day. There were some unfortunate incidents which happened in the national capital yesterday. This has to be condemned and the people who did this should be punished. I hope the supreme courts are watching and are on alert.

Coming to markets, we have another 2 days for the month's expiry. This has been a very very volatile month. I was on a vacation for last 4 days. So my positions were very less and I was luckily saved by this fall. I hope the markets will consolidate today and tomorrow. I missed the markets. Did not expect that I would miss such a wonderful shorting opportunity. I was waiting for FII to sell so that I can short. They did when I had to go on a vacation.

We are almost at the same point where we started this month. Nifty fell from 14750 to 14250 in just 3 sessions. Banknifty fell close to 2000. 

There was some geopolitical tension in the Indo-China border but Army has confirmed that it is resolved.

The world markets are not falling at the same rate as we are falling. I feel this is the chance for the new investors to enter and build some good stocks. 

Before, markets were falling, but FII was not selling. I clearly told that markets won't fall till they don't sell. They started selling and see what has happened. 

There were many companies which came out with results. The results were good but most of the stocks fell. Asian paints, Kotak bank, ultratech all came out with wonderful results.

Now the next event is the budget which will happen in few days. There is a lot of bet coming from various people. I will come out with a strategy tomorrow. Lets see how it plays.

On Monday, Reliance fell 5% even after delivering a wonderful results. Yesterday the GDR was up 1%. So it may not fall more from here. I sold 1800pe in feb and will take delivery if it comes there.


  1. Today will be a put ratio spread
    1. +1 X 14000pe
    2. -1 X 13900pe
    3. -1 X 13850pe
    4. -1 X 13800pe
  2. I will be deploying a huge chunk of money in this strategy today.
  3. All my stock options other than tatamotors are in good profit. Will close them today.
  4. I closed my nifty future short last week as I had to go on a vacation. I wish I had carried that. Luck also plays an important role


  1. Now FII are selling after buying for months. Is this just profit booking ahead of budget or will they continue to sell?? Need to wait and watch after budget. I personally feel that the selling will continue. May be the aggression might go down. 
  2. Day before yesterday, FII sold for 760cr and DII sold for 360cr
  3. This is clearly a sell on rally market. 
  1. The world markets are not falling as we are. 
  2. US is flat, Europe is also flat. Today SGX suggests 100 point gapdown after adjusting to yesterday.