Trade setup for 17th Feb

 Yesterday was a volatile session. Markets gapped up almost 100 points and closed flat. It went above 15400 and on the lower side, it went to 15250. But finally, it closed flat. This is how a volatile market behaves. In yesterday's blog, I did express my caution on these levels. Now crude prices will be in focus as it is shooting up every day. Rs 100 per litre of petrol will definitely have a sentimental impact and the next macro data will be important data to watch out for. It is obvious that the CPI, WPI data will be higher.

Now 15k and 15400 is the range. If this is broken I will trade aggressively in a particular direction. I feel that 15k would be broken and markets may head lower provided the FII stop a little for some time. I am not expecting a crash, but a good correction is what I am expecting. 

The VIX is still above 20 which also indicates that all is not well from the market's point of view. 

Now BigBasket is a Tata's product. Tata's bought it for $1.2 billion deal for a 68% stake. It was obvious that when Ambani's buy future, Tata's cannot be left behind.  

The finance bill will give clarity to NRI taxation which was not clear in the budget.

Nikkei is back to 30000 after a very very long time. Japan markets are at this level after 25 years. Now there is an optimism that they will go to all-time high very soon. 

Bitcoin is now at $50,000. 

Jeff Bezos is now the richest man again by beating Elon musk.


  1. I am expecting a fall in the market for the short term. I have executed the call spread in the monthly contract. I have executed this month and next month. I don't think any adjustment is needed for this month. If things go wrong then I may have to do some adjustment for the next month.
  2. The iron fly and butterfly executed for this weekly expiry is already in profit. I will exit this if nifty is below 15200 today. Otherwise, I will carry it for tomorrow.
  1. Most of the world markets are flat to negative. Yesterday, the US markets were mixed. Dow closed in mild green but nasdaq closed in red.
  2. Europe closed in the red.
  3. Today morning the Asian markets are in the red. SGX suggests a negative start for the day.
  1. Crude is now at $64. In Mumbai, the petrol prices are at 96 per litre. 
  2. $ is at Rs 74. Nowadays, it looks like all are dealing in cryptos and nobody is using the $. 
  1. $ index is at 90. So there is some FII flow to the indian markets.
  2. YEsterday FII bought for 1150cr and DII sold for 1500cr.