Trade setup for 25th Feb



 Yesterday was a day which has gone to history as the day that we opened the market at closing time. The NSE glitch caused a lot of chaos in the market especially after 3PM where people started squaring off in the BSE. Due to low liquidity, the traders had huge huge slippages. Then finally, markets opened at 3:30 and when everything was fine, there was a tweet from the finance ministry that now private banks can participate in the govt biz. They had an embargo till now. This turned out to be a piece of wonderful news for private banks like icici, hdfc bank and kotak. They shot and banknifty gained 1000 point and nifty shot to 15000. 

Now SEBI has asked for a detailed report to the exchanges. Now a lot of postmortems will happen. But the traders who lost have lost. No one will take responsibility. 

There were a lot of traders who have lost heavily. I know some of my clients who have lost due to the chaos. Luckily, I did not suffer any loss. I had taken leveraged positions. I had the scare of the margin shortfall penalty if I didn't close. When markets were started, I closed them and sat out.

Coming to the market, finally, we are at the expiry of a most volatile month. Today is the monthly expiry and obviously, there will be volatility. Looks like we will be taking out 15000. The markets are again back into the control of the bulls. 

The PM has clearly told that the govt has biz in doing biz. They are now privatizing and monetizing govt assets. Even this has provided a lot of enthusiasm among the traders and investors. 

For now, there is no need for anyone to think negative. Even technicals have proved that. Nifty and banknifty RSI was above 70. I wanted a consolidation to come so that the RSI falls below. It clearly happened and is now ready to take the previous high. This is a clear sign of the bull market. 

Bitcoin is again back to $50000. People who abused Elon musk are now thinking twice about what they did.

MY TRADES

  1. I have executed Ironfly at 15000 for the march expiry yesterday when it broke 15000
    1. -1 X 15000ce
    2. -1 X 150000pe
    3. +1 X 14000pe
    4. +1 X 16000ce
  2. All the butterfly, Iron condor, ratio spreads that I had executed are in good shape for today's expiry.
  3. Today I will be busy in the expiry trades.
INTERNATIONAL MARKETS
  1. The Dow has hit a 32000 mark for the first time. 
  2. European markets closed in the green.
  3. Today morning the Asian markets are in the green. SGX is suggesting a 50 point gap up.
FII AND DII
  1. I was not aware of the bosh deal yesterday. I was shocked by seeing 28000cr buying from FII. Then my twitter friends clarified me that there was a bosch deal. So FII were almost flat after the deal.
  2. DII bought for 230cr.
EXPIRY SETUP
  1. Highest OI in nifty is at 15000ce and 14800pe.
  2. Highest OI in the banknifty is at 37000ce and 36000pe
  3. MAx pain of the nifty is at 14800 and that of banknifty is at 37500
  4. Nifty may range from 15100 to 14900
  5. Banknifty may range from 37000 to 36000



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