Trade setup for 24th Feb



Yesterday was a very volatile session. The markets were everywhere. It gapped up, then fell 200 points, then again recover 100 points. It was very confusing to judge the direction of the markets move.
Finally, the nifty managed to close in the green and banknifty closed in the red. The main dragged for the banknifty was the kotak bank. It fell close to 4%. 
As expected, nifty has bounced from around the 20 DMA. It should go above  15k for the direction to be certain. Otherwise, the markets are still weak. Now even FII are selling. Dont jump and pull the gun and assume that the bull run will continue. 
Reliance will now be a holding company of 3 subsidiaries, which are O2C which means oil to chemicals, jio and retail. 
Bitcoins are now below $50000. It has fallen 20% in 2 days. This is how volatile this is. Tesla has lost $1.5 billion.
The techs are weak in the US. Apple, Tesla lost yesterday.
India vix is now at 25. This should be a no trade zone for the new traders as we saw a huge volatility yesterday and this may continue for sometime till the vix comes down.
After this expiry, I am planning to reduce my volumes till vix goes below 20. 
Today is Wednesday and you can expect some volatility. 

MY TRADES
  1. The butterfly trades which I had taken in on frday was in trouble on Monday. I did not do anything for this and yesterday it was again in profit. Today nifty may shoot another 100 points as per SGX and my butterfly will again be in safe zone. I will be earning more than 2% of my capital in this single trade.
  2. Yesterday I executed the below trades
    1. +1 X 14300pe
    2. -1 X 14500pe
    3. +1 X 15300ce
    4. -1 X 15000ce
  3. Yesterday, I also traded in futures where I sold nifty futures and covered it for 25 points. I would have got 100 points if I had waited. Anyway happy with the profit as the volumes were huge. 
FII AND DII
  1. Finally, FII sold for 1500cr and DII bought for 200 cr
CRUDE AND $
  1. Crude is now at 
  2. $ is at Rs
INTERNATIONAL MARKET
  1. Yesterday Dow recovered after Powell gave some positive statement on the economy. Finally, dow managed to end in the green. The techs were weak and nasdaq closed in the red.
  2. Europe closed higher.
  3. Today SGX is suggesting a gap up of 100 points. Lets see if this will sustain or will there be intraday volatility.

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