Trade setup for 18th May

 Yesterday we had a massive rally in nifty and especially in the banknifty. Nifty shot up 250 points and banknifty shot 1200points. This was surprising for me as the global markets were in the red.

A few days back when nifty was at 14500, I had put a poll and asked if 15000 would come first or 14000. Many told that 14000 would come first which even I felt. But it was wrong. Today we might break the 15000 marks again. 

We are again at the upper end of the range. If this is broken then the rally after this will be stronger and we may make an all-time high soon.

Yesterday the banks were the heroes. Indusind, SBI, hdfc bk, Axis all shot up. 

The covid cases are not seeing much significant fall and now many states have imposed lockdown. But the stock markets are in no mood to fall. 

Everyone is now against Elon Musk and Tesla. Mike burry who is known as a big short has placed a bet of 500 million against Tesla.

Bitcoin has become volatile after musk told that they have not sold bitcoins.

Today the Taiwan markets have shot up 3% after they fell yesterday. 

The US is trying to stop the conflict in the middle east as Israel and Hamas continue to fire.


  1. The dow opened in the red and recovered most of it and closed in flat. The techs and the travel companies were the losers. 
  2. Europe also closed in the red
  3. Today the Asian markets are in green. The US futures are in the green.
  4. SGX is suggesting a 150+ point gap. Lets see how it startes.
  1. This was again shocking. FII sold for 2255cr and DII bought only for 1948. So the institutions were net sellers and nifty shot up 250 points!!! I think I am seeing this for the first time. Maybe there might be a bulkdeal which I did not bother to check.
  1. Today all my trades are in danger. I think I may have to book some losses for this week as I had taken all trades with the bearish view. 
  2. Markets have totally moved opposite to what I thought. Yesterday and today, markets would have made a 400 point move.
  3. In my zerodha account, I have taken a strangle in banknifty. Looks like, I need to add some adjustment today or close it in loss.