Trade setup for 22nd April

 Yesterday was a holiday and it looks like we will have a gap down, at least that's what SGX is suggesting. Yesterday SGX fell around 300 points and today it has recovered around 150 points. So we may have a 100 points gapdown and from there we will be taking it. 

Now covid has again taken the front seat. India is in second place now in the world. We may become 1st if we grow at the same rate in less than a month. Now many cities are imposing new restrictions which have increased the uncertainty. Obviously, markets do not like uncertainty. 

The US markets fell after we closed and yesterday it recovered. It's good that we were closed otherwise there would be a drama here as well.

Today markets will be volatile as we are opening after a holiday and today is the weekly expiry as well.

Serum Institute has given a new price for the vaccine at Rs 400 for govt and Rs 600 for private. So this is some positive news. Now govt has told that they have enough oxygen and medicines. 

The cryptos are falling. Bitcoin has fallen 10% and Dogecoin which was Elon musk's darling is again back to below Rs 30.


  1. I closed the call spread which I had taken in the Zerodha account and I have sold a deep OTM banknitfy put. I may make a profit in that as well.
  2. The futures which I had sold some time back is in good profit. I am planning to carry them as I am expecting markets to go below 14k. Now it is a no-loss strategy for me as I have bought the calls and have made it loss-free. I may even roll over if markets do not go below 14000 this month.
  3. Some of my strategies like butterfly and iron fly will be in danger as there will be a gap-down. I will be busy in doing adjustments.
  1. Now we have our strong, uncertain domestic cues. So I don't think watching international will make any sense now. Till covid cases fall, this will be the talk of the town. The developed nations have vaccinated a good percentage of their population. We need to increase the pace of vaccination and reduce the case.
  2. The US markets ended in green after falling for 2 days.
  3. Europe closed in green.
  4. Today the Asian markets are in the green. SGX is suggesting a 150-200 point gap down. I am expecting a recovery in the second half.
  1. FII sold for 1000cr and DII bought for 1300cr. This was expected. FII will run when there is uncertainty.
  1. Crude is at $
  2. $ is at Rs 75.3
  1. Nifty has the highest OI at 14500ce and 14000pe
  2. Banknifty has the highest OI at 31500ce and 30500pe
  3. Nifty max pain is at 14200 and that of bank nifty is at 31200
  4. If there is a gap down of more than 200 points then there will be a sharp recovery in the 2nd half.
  5. I will be executing straddle at 14300 at opening. Then I will manage them for the day.
CLICK HERE to attend a free webinar on Options trading