Trade setup for 12th Feb

 Yesterday was a cool expiry. Nifty and banknifty were very cool. They were not at all violent. It was like sitting near the beach and trading. I hope banknifty behaves like this only on every expiry. 

Twitter has now bent to the govt and has blocked all the account which they were supposed to block. Good that these MNC's are reminded that they need to follow the law of the land.

Yesterday MRF and ITC came out with results. MRF was about to touch 1lak. First time in the history that a company was traded in 6lak figure. But that did not happen. It went close to 98k and then fell to 90k. It's just a matter of time that this will touch 1lak very soon. So, people can accumulate this for the short term. The results were excellent, but still, the stock price fell as it had rallied and probably it expected something more. They have declared a dividend of Rs 3 per share which was funny. They have not given any bonus, split or anything to the shareholders till now. This company is not a shareholder-friendly company. 

ITC results were also not bad, so even that will be in focus today. The option premiums were high yesterday. Today there might be IV crash. The stock might not rally as it has rallied a lot after budget when there was no tax on cigarettes. 

Now we are in a consolidation phase which is very good for the healthy markets. I will turn buyer if this consolidation lasts long. The covid era is over. Now things will depend on macros, earning and performances. 

The VIX is falling which is good. Even the CBOE vix is falling. Consolidation in markets with vix falling means that markets are preparing for another rally.


  1. Yesterday's expiry was good and I was able to close in green.
  2. Today I will be executing iron fly and call ratio spreads. This is the best strategy for the consolidation market.
  3. I am now doing paper-trading for an algo trade which I will be deploying from next month if it proves to be good.
  1. Nasdaq is at high. Its at 14k+. Dow is flat.
  2. Europe is also flat. Today the asian markets are also flat. 
  3. SGX is telling that we will open flat.
  1. FII bought for 950cr and DII sold for 700cr. FII are reducing the volumes. Lets see if this is the gap they are taking before a huge pump? I don't think so as we don't have any major event coming. I wont be surprised even if they sell some.
  1. Crude is at $60. This is bad and in Mumbai petrol is almost at 100. There will be inflation, sentimental pushback if this keeps on rising. May be this may lead the trigger for the markets to fall.
  2. $ is at Rs Rs73