Trade setup for budget day



 Today is the D-day. The most awaited day. The budget day. Will the FM reduce taxes for individuals??

Markets have crashed 1000 points from its recent highs in a week. Will the budget provide the mojo to the markets and will markets form another nirmala sitaraman candle again??

On Friday, it looked like markets have snapped the bear rally, but the volatility kicked in and markets fell. Reliance is very very weak.

Many companies came with results but that may not be important today. All the earning like ICICI bank and tata mptors were good. 

I don't think markets will go up soon. The budget might be good but it may not give the mojo to the market. I was expecting the markets to correct after the budget but the 1000 fall has kept my positions neutral. I am not carrying any positions for the day. 

FM has told that this will be the best budget post-pandemic. Let's see what is in store. Personally, I don't think there is much for the markets to cheer. 

There is a rumour of banning bitcoin and launching anew digital currency. 

I am still expecting the markets to fall. Bears will not give any relief. FII are not selling in huge quantities. I don't think the finance minister has enough to boost the stock market. I am planning to buy some put option in some stock as premiums in indices are very high.

Income tax slab might not be changed. There might be more spending in healthcare. Loans and subsidies can be made easy.

There is no point in expecting from budget and trading. It will be volatile and risky. Better stay away or keep volumes low.


MY TRADES

  1. The major stock that will be in focus is ITC as cigarette prices will be increased every time. It will be the same this time also. So I will execute this strategy. Let's see how it goes.
    1. -1 X 200pe
    2. -1 X 200ce
  2. No more new trades. I will silently watch and then take a call in the evening.
INTERNATIONAL MARKETS
  1. Globally all are weak. No point talking about global markets today as we have a event. 
  2. SGX is jumping between red and green since morning. 
FII AND DII
  1. They are selling. Dont be surprised. The bought aggressively and now they are selling aggressively. 
  2. I don't think they will stop. 

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