Trade setup for 7th Jan

 Today will be an interesting expiry. The US markets are on the focus as Joe Biden has won clearly and the Democrats in control of the house, senate and the presidency. This has happened in the US after a long long time. There are a lot of riots in the US capitol and many buildings are closed to avoid damage from rioters. Twitter and FB have banned Trump's account after he claimed that the votes were stolen.

Dow shot up 400 points but the IT was lagging and the Nasdaq closed in the red. The US has banned investment in many Chinese company. 

Now the markets are expecting a huge stimulus to the US market in 2021. At the same time, there is a fear that the tax will also be increased.

Coming to our markets, after a long time, the markets did not close at the day's high. Markets closed in the red. There was a good pullback in the last hour though. But the bulls could not end in the green.

Maharashtra govt clears the proposal to cut govt levies on real estate by 50% till Dec 2021. This is a huge move by the state. The Mumbai based developers will be benefited and you can expect some movement in these reality stocks.

The next big thing or event is the budget. 

Reliance is down 20+% from its high. ITC is falling as the cigarette ban proposal is on the way. Yesterday naukri shot up 5% and closed by -5%. It had overrun and 

I am selling OTM puts in these and will take delivery if it falls further.

Today you have the US job data.


  1. I have executed the below strategy in Reliance
    1. -1 X 1800pe
    2. +1 X 1500pe
    3. -1 X 2200ce
    4. +1 X 2300ce
  2. I have executed the below strategy in ITC
    1. +1 X 200pe
    2. -1 X 195pe
    3. -2 X 190pe
  3. I had executed bajajfinance and kotakbank call spread. It is in wonderful profit.
  4. Yesterday I executed naukri call spread. Yesterday's fall already gave me 5% profit for a single day. Today there will be IV crash and I will get more profit and I may exit
  1. The US markets are roaring with the hope of the stimulus package. 
  2. European markets closed in the green. FTSE gained 3%
  3. Today morning the Asian markets are green. SGX suggests a 100 point gap.
  1. Yesterday both FII AND DII sold. FII sold for 480cr and DII sold for 380cr. 
  2. This is negligible for the amount they have bought till now.
  1. Nifty has highest OI at 14000pe and 14200ce
  2. Bankifty has highest OI at 32000ce and 31500pe
  3. Nifty has max pain at 14100 and that of banknifty is at 31700.
  4. Nifty may range from 14150-14250
  5. Banknifty may range from 32100 to 31400