Trade setup for 16th Feb

 Nifty is not looking for consolidation. It's in no mood to rest. Yesterday, the bull charge continued. The major gainer was the banks. Banknifty shot up and there was no major news for the banks. The only news was the speculation on the public banks which are going to be privatised. For this news, not only PSU banks but also private banks also shot.

Banknifty crossed 37000 and nifty crossed 15300. The nifty future was at a discount till yesterday. Yesterday there was a premium. So the upmove would continue.

There is a rumour that bank of Maharashtra, BOI, IOB and central bank of India has been shortlisted by the govt for privatizing. Today, the bank nifty might cool a bit.

Bajaj finance has hit an all-time high. This has been a massive move in the stock. It fell to 1800 in covid and has now gone to 5000+. It's very difficult to trade in these high beta stocks.

Crude oil is shooting which is bad for countries like India.


  1. As I told yesterday, I have executed the 15000 short straddles in the December month as nifty may move slowly from here.
  2. Yesterday, I was busy doing paper-trading for my new algo which I have been working on. It looks like the algo may not take off as there are a lot of hurdles in its development.
  3. I have executed iron fly and butterfly for this weekly expiry and both of them are in good shape for now.
  4. I had executed a short straddle for intraday, but the last half an hour move in banknifty made to convert that to iron fly and I am carrying that today. It's a small quantity so I need not worry.
  1. Yesterday, the US markets were closed.
  2. Today the Dow futures are up by 200 points.
  3. European markets closed in the green. 
  4. Today the Asian markets are flat and some are still in the holiday. SGX is suggesting a flat opening.
  1. FII is back after a day of selling. Yesterday they bought for 1200cr and DII sold for 1000cr
CRUDE and $
  1. Crude is at $63.5. Crude is shooting as the consumption is growing worldwide. Petrol and diesel prices are at a record high in India. 
  2. $ is at Rs 72.6
  1. I will be little cautious here as RSI of nifty and banknifty is above 70. There might be a sharp reversal if there is a bad news that trigers. The consolidation phase should continue for sometime so that RSI falls. If this happens then the bull run is here to continue.
  2. RSI of dow is close to 70.
  3. 15000 is a strong support now. Any fall below that will be observed carefully.