Trade setup for 12th April

 Globally markets are flat, but we have bad local news which is the carona cases. We are breaking records every day with new cases. The cases are surging at an alarming rate. Maharashtra is looking for options to lockdown. I personally don't think that will happen. So markets might be under some pressure for some time.

As I told you before, we are still in a sideways market with a pretty wide range. For me, the range is between 14500 to 15200. If closing is outside this range then the trend may continue. However, I feel that the lower range will be broken than the upper range. I won't be surprised if we even go to 14000 this month. 

A discount broker upstock has reported that some of their user's data has been compromised but the funds are safe. This is the problem with technology. Hackers somehow find a path to access it.

The earning season is going to begin and I will be sharing an earning trade for TCS which is today(aftermarket). Over the weekend, Infosys has told that they will be a buyback of shares. So today that may be positive.

This quarter earning is a reality check for the rally in the markets. All this time, the markets rallied with the hope that things are normal. Now it is time for numbers to tell if the euphoria lasts or will there be corrected. I feel that reality is always bitter than the fantasy world. So a correction is inevitable. Again, a small correction in a healthy bull market is really good and appreciated. I feel a pullback to 14000 is a good and healthy correction. So I will be trading with that view. Let's see.

We have just 3 more days for this weekly expiry as there is a public holiday. Dont assume that you get theta decay and you can end in profit by selling options. Markets usually factor these and the delta can be more than the theta decay in case of violent moves.

The chip shortage issue may not be resolved for the entire 2021. So the automobile sector will be under pressure. Its surprising how a state in the US is controlling the entire industry worldwide.

Alibaba has been fined 2 billion in China for violating regulations.  The stock jumps 5% in hangseng. This is what happens in a communist country when you go against the govt. Be lucky that you are in a country like India.

Today you have the macro data which will also decide the market movement.


  1. In my Zerodha account, I have executed a trade-in banknifty and for now, it is in profit. Today I may get more profit and I may carry that to expiry if it is in a safe zone.
  2. I have executed iron fly at 14800 which is already in profit.
  3. I have executed butterfly in large quantity
  4. Today I will do a trade-in TCS as a result trade. Let's see how it goes.
  1. The US markets closed in the green on Friday. The futures are lower now.
  2. Europe was mixed. FTSE ended in green but DAX and CAC closed in the red.
  3. Today morning the Asian markets are in the red. SGX is suggesting a gap down of 100 points.
  1. As I told you before, FII has bought a lot in 1 year and they will sell when there is slight negativity. 
  2. On Friday, FII sold for 650cr and DII sold for 250cr.
  1. Crude is at $63.2
  2. $ is at Rs 75