Trade setup for 7th April



 Today is RBI policy day. Now we need to see if  RBI provides any boost to banknifty as that has underperformed. MPC may not hike rates and they may have a neutral stance. But banknifty will be very volatile today. So avoid trading. Even if you are trading then make sure that you trade in deep OTM at least 1000 points away and obviously with a hedge.

Now markets are volatile as Covid is slowly taking over. However, the midcaps are gaining momentum. It's really difficult for the markets to collapse drastically when the midcaps are going up. Markets are close to 14700. I am still not able to get a clear direction of the market. This earnings season will give us a direction. So I will not be making any fresh equity investment till that is over.

Adani groups are in focus as they might be included in the index. All Adani stocks shot up. A few decades back, it was tatas and birlas. In a few decades from now, I won't be surprised if it is Ambanis and Adanis.

Mumbai has put restrictions, Delhi has put restrictions. Will other states follow?? There are elections going on in major states like TN and Bengal. We need to see if they will put restriction after that.

No major event in the world market as well.

The banks are weak. All banks like ICICI, HDFC are falling. Reliance is again below 2k. I will be selling deep OTM puts in these counters and will take delivery if it falls.


MY TRADES

  1. I have done the below strategy for the RBI monetary policy
    1. +2 X 32000pe
    2. -1 X 33000pe
  2. I have not done any adjustment to the Zerodha trades which I have. It is in mild profit. Today I may end in profit. If profit is good then I may close the trades today.
  3. For investing purpose, I have sold
    1. -1 X 1800pe in reliance
    2. -1 X 500pe in icici bank
    3. I will add more in banks today. 
INTERNATIONAL MAREKTS
  1. The US markets ended lower. 
  2. Europe closed higher.
  3. Today the Asian markets are flat. SGX is flat. Today is an event day for us and there is no point following global cues as that may not have an impact.
FII AND DII
  1. FII are now selling. Yesterday they sold for 1000cr and DII bought for 416cr.


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