Trade setup for the day



 Yesterday was a wonderful budget which was given by the FM. I never expected such a good one during this covid situation. Hats off to the FM. The markets have given a thumbs up to the budget. Banknifty shot up 2500 and nifty shot up 700 points. The stock market moved like never before the budget and the FM kept the promise of delivering a budget like never before. 

The major points were selling 2 PSU banks. Increasing FDI to 74% in insurance. Forming an ARC or a debt bank. No hike in the cigarette. No hike in tax slabs. These were the things that cheered the market.

Yesterday, it was just banking which shot up. ICICI, SBI were in a circuit freeze for some time. Today and slowly other sectors may follow.

Now the Reddit traders are behind the silver and now GameStop saga seems to be over. Silver has shot 8% yesterday.

Now we should be able to get 14500 very soon. Nifty fell 1000 points in 4 days and recovered 700 in just 1 day. That's how bull markets are for you. 

I did not expect such a fast recovery after seeing the way FII were selling in the last week. I thought they would continue to sell even with a good budget. But that did not happen. My view was completely washed out. But luckily, I did not have any major trade. Otherwise, I would be in the soup. 

Still, the FII have bought only for 1500cr and DII sold for 90cr. Seeing the movement, I thought FII would have bought for at least 5kcr.

I did not get indigo paints even after applying from multiple accounts. Now my IRFC is 5% from its issue price. Now that the bull run is back, I am sure that it will go beyond the issue price.

MY TRADES

  1. Today I will be executing some put ratio spreads and if there is more rally in the banks then I will be executing the call ratio spread.
  2. I had not executed covered call for my ITC positions due to budget. Today I will be doing that as there might not be a major move from now. I will be happy even there is a move as my underlying will be gaining.
  3. I am buying 14500ce in the monthly expiry. I am sure that it will be captured very soon. 
INTERNATIONAL MARKET
  1. As gamestop saga is over. The VIX has collapsed and the global markets are rallying. 
  2. Today the US, Europe and the Asian markets are in the green. 

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