Trade setup for 5th March



 Crossing 20 DMA was a trap. Now I am sure that markets will fall now. Now, most of my trades are now on the short side.

At one point, when nifty crossed 20 DMA, I thought that I was wrong but yesterday's fall gave me the confidence that I was not that wrong.

Midcaps are one sector that is gaining. Looks like the new Demat accounts which have opened by retailers are deploying in midcaps. I am not comfortable in their upmove. I usually stay away from midcap and smallcap.

Dow fell as yields rise and it is now at 1.55. Everyone expected that Powell would give some relief, but his speech did not make any such statement and Dow fell drastically. Powell told that inflation might go up and this might be temporary.

Today you have the job data in the US.

The darling(bitcoin) is again below $50k and is now close to $45k.

As I had told before, 32000 is a strong resistance for Dow and it reversed. It's better to use technical skills on dow as we Indian markets just follow them.

I don't think we will go up as long as dow crosses 32k. 

Crude prices are rising and how can you expect the stock markets to shoot in this environment. The next CPI, IIP data will be bad obviously.

Nasdaq has fallen for the year and has turned negative for the year. It had hit a double top and is now falling. Tesla which shot every day is now falling every day. 

Wipro has acquired a company for $1.5 billion. 

Indian IT companies are not falling despite Nasdaq falling brutally. If Nasdaq does not recover then  

MY TRADES

  1. I have not yet taken any trades for the weekly expiry.
  2. I have taken huge positions in monthly expiry on the lower side. I will be in wonderful profits now.
  3. I will execute butterfly strategies today. Will decide strikes after the market opens.
  4. I will execute the below strategy
    1. +1 X 15000ce
    2. -1 X 15100ce
    3. -1 X 15200ce
    4. -1 X 15300ce
INTERNATIONAL MARKETS
  1. Dow closed by losing 350 points but it had fallen 700points and then recover 350 points. 
  2. Nasdaq is in red for some days now. Yesterday it lost around 275 points.
  3. Europe was almost flat. But today the futures are in the red.
  4. Today morning the Asian markets are in the red. SGX has lost almost 200 points.
CRUDE AND $
  1. Crude is at $67.19. 
  2. $ is at Rs 73.12
FII AND DII
  1. Yesterday FII sold for 200cr and DII sold for 800cr.
  2. Remember, FII has deployed a lot in the Indian markets and now they have a lot of option to liquidate. 



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