Trade setup for 6th April

 Yesterday the markets just fell like cards. Nifty fell 400 points and banknifty fell 1500 points. I expected the fall but I definitely did not expect such a brutal fall.

Yesterday in my blog I told that 14500 is a support and if that is broken then we can head to 140000. But nifty bounced back from that level and is now above 14600. This week will be very important for the markets. If we close below 14500 then we may go lower else we can consider that yesterday's selling was just a panic selling.

The covid fears are back again. The cases have topped even the last year's record. 

Yesterday the US jobs data came and it was very good because of which the US markets have shot. We have our own domestic issue of covid resurgence. I feel that this will be used by the bears for shorting and I feel that we will go down to 14k in some time. 

Dow and S&P closed at a record close. Nasdaq gained more than 1.5%

Now earning season will begin and market movement will be determined by the results. I personally feel that the results will be good and markets will fall. In the long term, I am really bullish. But for the short term, a pullback is needed and a bounce at 14k will give me more confidence to go long for the long term. 

Maharashtra is having its own covid issue and its home minister has resigned which is adding salt to the wound as the administration will get a jolt.

Vladimir Putin to continue for another 2 terms in Russia.

Janet Yellen is proposing a global minimum corporate tax.


  1. In my Zerodha account, I took a trade and I had to do adjustment immediately as nifty fell 300 points after I took the trade. Yesterday I was with a profit of almost 1k. Let's see if today I need to do any adjustments or will I be able to close it in profit.
  2. The butterfly which I had was also in danger and I have added more legs to that as well.
  1. The US markets closed in the green. Dow and S&P are at record close.
  2. Dow has given back 200 points after making a record. Dow futures are in the red.
  3. Europe closed in the green.
  4. Today the Asian markets are flat to negative. SGX is suggesting a flat start.
  1. FII sold for 900cr and DII bought for just 75cr
  2. Now if FII start selling aggressively then we will definitely head lower.
14800ce had huge number of contracts being added. So we may not head lower. One can execute a ratio spread above this strike. Similarly in banknifty it is at 33000

CLICK HERE to register for a free webinar on options trading