Trade setup for 19th April

 Now Corona issue gradually taking some traction. The cases are rising at an alarming rate. There are bed shortages, oxygen shortages in the hospitals. So, be careful as the media is not highlighting but the virus saga is still not over.  

Now one by one states are imposing restrictions. The govt is having a hard time managing this. The oxygen for industrial use has been stopped as it is needed for hospitals.

Coming to markets, it is as usual volatile. Now, this volatility has become a norm. Even when we had bad local news, these markets are going up. It is now around 14600. Sometimes logic doesn't work in markets. you just need to go by the trend.

We had HDFC bank results over the weekend and the results are good. Let's see how markets will take that. Today it looks like it will be HDFC bank day and obviously banknifty day. 

Today we have ACC results. 

As I told you before, this quarter is the reality check for the companies valuation. Most of the time, the valuation does not match the high valuation and the markets tend to correct when reality hits.


I am short in the market. I have nifty short positions and I will carry them for few months probably as I am expecting markets to come below 14000. If it goes up, then I will average. If it falls more then I will add more and do pyramiding. This is a slightly risky trade, so I don't suggest new traders do this.

In my Zerodha account, I have executed some call spreads. It was already in profit on Friday. Today I will be making more profit. If profits are good then I will exit them and take some fresh positions. I have shared that in the telegram as well.

I have executed below strategy

  1.   +1 X 14800ce
  2.  -1X 14900ce
  3.  -1X 14900pe
  4.  -3 X 15000ce


  1. There is some tension between the US and Russia after Russia arrested a Putin critic.
  2. The US bond yield is now at 1.56
  3. The US and the European markets are making new records every day. I feel that the bubble is building up and very soon this will burst. 
  4. Technically, all the European and the US markets RSI is above 70 which means that they are in the overbought positions. When they fall, it is obvious that even we fall.
  5. Today the US markets futures are down.
  6. Even cryptos are falling. Dogecoin which had touched 40 is now again back to 25.
  7. Bitcoin also fell close to 14%. This sector is a very volatile segment. I recently opened my account in wazirx. I will be investing a part of my money in these. Let's see if this becomes a multi-bagger or a begger.
  8. SGX is suggesting a gapdown of 200 points. 
  1. On Friday, FII bought for 400cr and DII bought for 600cr. 
  2. It looks like today they will be selling.\
  1. Crude is at $66.27
  2. $ is at Rs 74.5

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