Trade setup for 4th Jan 2021

 The new year beginning seems to have given us a wonderful start. We are well above 14000 and looks like even 14k has been broken easily. Now we get to the reality check as the earning season will begin. In a few days we have Infosys, TCS coming with the results. So it will be interesting to see if the reality falls in line with the euphoria. Then we have the budget which will add more fuel to the sentiments. It will be interesting how the budget will span out after the pandemic. 

Bharat biotech's vaccine is approved to manufacture and distribute the COVID vaccine. So this is another good news for the market.

Bitcoin is at its highest rate now. It is now at $34000. 

The bank loans are also back to its Feb 2020 value. So this is also another indicator that the normalcy in the economy has returned. 

The auto sales data shows that there is a wonderful recovery. Tata motor and Ashok Leyland reported wonderful numbers.

The GST data also is at the highest point at this time. The GST collection is at 1.15lak cr.


  1. I don't have huge positions deployed as I wanted to get clarity on the direction. Last week the volumes were low. So I refrained from deploying. Today I am pretty much confident that the market bull run is here to stay at least till the budget. 
  2. I will be deploying a huge volume in put ratio spreads today for weekly and monthly.
  3. The best part is that the VIX fell drastically on Friday.
  1. The US markets closed in green.
  2. The Asian markets are mixed for today. Japan is down due to the fear of fresh lockdown.
  3. European markets closed in the red. 
  1. Better to ignore FII data in the last week as they will not be actively trading. This week FII and DII data will be important. Lets see how it goes.
CRUDE and $
  1. Crude is at 52
  2. $ is at 73