Trade setup for 30th March



 It was a nice long HOLIday and it looks like we will start the April series with a  bang. Now that the Covid cases are rising, the states are imposing fresh restrictions. There may not be a national lockdown like we had last April. I think now the stock markets are well prepared and there may not be knee jerk reactions.

Now we will start the earning seasons and now earnings should justify the stock movement. If that cannot be done then the reality may bite and stocks might correct and obviously, markets will correct. I feel this will happen this quarter. We may not go higher and we may head slightly lower. 

The Suez canal issue is resolved as the evergreen container ship has been removed. The oil stocks shot up and analysts gave credit to this resolution. I don't think this was the reason for that. I don't think stock markets even gave any head to this issue because it was a small technical issue that was known to be solved quickly. 

Sebi has given another circular to exchanges where people who create a fake bid and ask prices will now be stopped from placing trades for 15 min. This was a common algo trades where the algos create a fake bid and ask price volumes without executing the order. From now that account will be disabled and will not be able to trade for some time if they reach the threshold. 

Goldman Sachs, Morgan Stanley sold a huge amount of Chinese stocks on Friday. Do they know something which we don't? Is there any trade war setup happening??

FII has sold for 50cr and DII have bought for 1700cr. Now we know why we shot up so much on Friday.

Markets are still weak. I will be using every rise to short the markets.

MY TRADES

  1. I have executed butterfly in huge volumes. I even showed this to some of my students over the long weekend in a one-2-one meeting with them and explained how it has to be done.
  2. I have closed the call ratio spread which I had done some days back in some account and I will close them in others today.
  3. I will be doing intraday trades in my Zerodha account today. Let's see how it goes. I will be doing this strategy
    1. +1 14900ce
    2. -2 15000ce
INTERNATIONAL MARKETS
  1. The US was mixed. Dow was flat but the tech-heavy index, Nasdaq closed in the red.
  2. Europe was also flat to positive.
  3. Today morning the Asian markets are flat to negative. SGX suggests a gap up.
CRUDE AND $
  1. Crude is at $65
  2. $ is at Rs 72.77

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