Trade setup for 20th May



The US markets were very volatile in yesterday's session ahead of the Us fed minutes. The main point of discussion was inflation. The Dow opened with a deep red but recovered most of the losses in the second half. It closed by losing only 160 points. This is the 3rd day dow is losing in the US market. The techs fell drastically and even they recovered in the second half. 

The main talk of the town was cryptos. Bitcoin fell 30% and recovered slowly. It touched $30000 and is now back to close to $40k. A lot of exchanges had to be shut down due to the huge volume which they could not handle. This shows how vulnerable these assets are. You can mint money if you can catch the right move but if it backfires then ...

Elon musk's tweet somehow helped the recovery of bitcoin and Dogecoin. Cryptos crippled as China has asked its financial institution not to use it. This news came a day before yesterday and there was no impact then. Suddenly yesterday this had an impact on the cryptos which was surprising. 

Auto sectors are proving to be the next trending sector as all are now moving to electric. Even governments are pushing for EV as climate change has become a serious concern. So make sure you have auto companies that have exposure to EV in your portfolio. You can also add companies that are associated for this like battery stocks, tyre stocks etc.

The Israel-Palestine conflict is still going on and the pressure for a ceasefire is increasing.  

MY TRADES

  1. This week has been a difficult week for me as I expected the market to fall and markets are rallying. 
  2. I have done a lot of adjustments and will continue to do today as well.
  3. Today I will be busy with the expiry trade.
INTERNATIONAL MARKETS
  1. US markets fell and recovered but still closed in the red.
  2. European markets also closed in the red.
  3. Today the Asan markets are flat. SGX is suggesting a +ve opening.
FII AND DII
  1. The day before yesterday both FII and DII bought. Yesterday both FII and DII sold. Even this data is confusing.
  2. Yesterday FII sold for 700cr and DII sold for 850cr
EXPIRY SETUP
  1. Today I am expecting the markets to be volatile. So deciding the direction will be a little difficult.
  2. Nifty has the highest OI at 15200ce and 14900pe
  3. Banknifty has the highest OI at  34kce and 33kpe
  4. Nifty might range from 14900 to 15200
  5. Banknifty may range from 33k to 34k.

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