Trade setup for 17th March

Yesterday was a consolidated session. It was not as volatile as it used to be. It was mostly an option seller day as vix cooled off slightly and the premiums reduced. 

Today you have US FOMC outcome and the US markets will be volatile. This volatility may affect other markets tomorrow. So I am planning to book some profit today so that my volumes will be low for tomorrow.

The cabinet has cleared the formation of a development finance institution. There will be 10000cr used initially and later it will be hiked. 

Now it is the IPO season. In the bull market, many IPO will be there as companies would like to leverage the opportunity to raise funds.

Biden has hinted that corporate tax in the US will be hiked to 28% from 21%. This will be very bad for the stock market. Nirmala sitaraman had reduced the tax 2 years ago for corporates and then there was a super move in the stock markets. She did this because, countries like Thailand, Indonesia did it. Now if US hikes then all other countries will follow. India will not be an exception. So markets will crash if this happens across the world.

Alibaba browser is removed from the Chinese app store. This is what happens when you raise your voice in a communist country. Be happy that you are living in a democratic country like India.

I think Vedanta is very keen to kick out the public from its holding. First, it was delisting which failed. Now buyback. I sold my investment in this for 100 rs fearing delisting. Today it is double. 

As I told you before, 15000 is looking like a very strong resistance. Yesterday, I also showed the possible formation of a double top. The banks are also looking weak.

I am selling every rally which is happening intraday. Now, this trend will continue for some time. Buy on dips trend lasted for a very long time. Now, I believe that sell on rally also will be there for a long time.

34400 is very strong support. If this is broken then banks will go lower. 

Let's see if FOMC bring the mojo back. Better book some profit if you have to be on the safer side.


  1. The adjustment trades in butterfly is working and now the entire trades are in profit.
  2. The ratio spreads are also in profits. Today I will be exiting the ratio spreads and will carry the butterfly for tomorrow.
  3. Today, I will do pre expiry intraday trades with leverage. I don't have plans to carry major positions or new positions for tomorrow.
  1. Nasdaq has recovered as it fell due to increasing bond yeilds. There are a lot of economists who tell that markets can continue to rise even if bond yield goto 2.  Now it is 1.6.
  2. Yesterday the Nasdaq closed in the green and dow in mild red. No major move is seen as they have an event coming today.
  3. European markets closed in green
  4. Today the Asian markets are mixed. China is down and JApan is green. SGX is showing a mild positive. I feel that the gapup will be sold into. 
  1. FII bought for 1700cr and DII Sold for 1150cr.
  2. This FII data is very confusing. One day, they sell heavily. Then suddenly they will buy. I was looking at this as an indicator to carry shorts till they become buyers. But yesterday they have bought it. Now I will just go by my systems. I will keep 15000 as the resistance. If that is broken on closing, then I will change my view accordingly.
  1. Crude is at $68.4
  2. $ is at Rs 72.5
Click here to attend a free webinar on options trading