Trade setup for 31th May



 Looks like nifty is not going to rest anytime soon. Last week it was up for 4 days consecutively. Today SGX is suggesting a lower opening but I won't be surprised if that is taken out. This is what happens when there is a consolidation and then a breakout. Nifty played ping pong and then came a breakout. On Friday, we closed at an all-time high. On Friday, it was a reliance rally. Reliance alone contributed 90 points of the rally. Jeffries upgraded the stock and their petrochem biz. 

Now there is a cup formation. I will be happy if there is a handle formation as that will give more conviction to go long and consolidation is required now as we have moved swiftly.

The advance decline is not good on Friday. So a consolidation might be in place.

Tomorrow you have the auto data and it will be obviously bad because may month was a shutdown month. The question is how bad will that get.

Paytm board approved IPO and they might come to IPO during Diwali. It will be one of the biggest IPO.

10cr dozes can be given in June is what the serum institute is telling. So it looks like covid fears are over and now it is how the economy moves from here. I won't be surprised if aviation, theatres, hospitality and other covid effected sectors perform well in the next few quarters.

Fuel prices are in focus as Mumbai reached 100 per litre of petrol.

Monsoon will start and the met dept has told that the monsoon will come as expected and this news is good for the economy.

China PMI data came and it is lower for the month of May. That's why today the Asian markets are in slightly red.

Covid cases are slightly increasing in countries like Malaysia, Vietnam. But this will be taken case as the spike is not very high and they have seen higher spikes in the past.

The cryptos are falling after restriction from many countries. Crypt friend, Elon Musk is also not making any tweet in this regard. 

From today, only 25% leverage can be given by the broker. Many are feeling that their livelihood is being taken out. I will be doing a detailed video on that today. 

MY TRADES

  1. I did a live trade on strangle and straddle on Friday. It was not an exact live as my 'Go live' feature of youtube was not active. I am yet to learn how to use that as it is slightly complicated. Hopefully, next time I will be able to do that.
  2.  I am executed straddle in monthly expiry and strangle in the weekly expiry. I was sitting in profit in both of them by the end of the day.
  3. I forgot to take a trade-in of my Zerodha account. I will initiate a trade today in that.
  4. The BHEL trade which I took is in good profit already. 
  5. I have taken a huge quantity of butterfly trades as this week looks like a consolidation week.
INTERNATIONAL MAREKTS
  1. US markets were flat.
  2. European markets were also flat to positive.
  3. Today due to the macro data of china and japan, the Asian markets are slightly weak.
  4. SGX is suggesting a -50 opening for our markets. 
FII AND DII
  1. Both were buyers on Friday. FII bought for 900cr and DII bought for 1275cr. Relaince had a huge delivery volume.
CRUDE AND $
  1. Crude is inching towards $70
  2. $ is at Rs 72.5


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