Trade setup for 6th May



 Frankly, now we are getting a lot of confusing signals from everywhere. FII are selling and the international markets are making new highs every day. By that logic, we should cope up with the global cues and head higher. But the charts are telling a different story. Charts are suggesting that we may fall more. It's not clear, at least for me. 

Many developed nations have vaccinated a good number of their population and it's expected that they will be normal in some time. There will be biz travel and economy opens up. So now the money is moving from tech sectors to the other sectors.

Nasdaq closed in red for the 4th session and dow has closed at a record high. FTSE closed at a record high.

Today we have the US job data which everyone is watching carefully.

Yesterday, the RBI governor came and gave some covid benefits. Now one can avail covid loan if you are hospitalised. There was no moratorium extension. 

Tata steel came out with its results and it has beaten the estimates. Let's see if the rally in this will continue. Anyway, the metals and pharma are on fire for some days now.

Facebook has continued to ban Trump from its site.

Now the talk of the town is Dogecoin which is 8000% in this year alone. Now it is at Rs 50. God alone knows what is the state of cryptos.

Govt has told that the 3rd wave is inevitable and is not sure of the timeline. There might be a 3rd wave, but stock markets may ignore that. There may not be any more nationwide lockdowns. There might be more restrictions.

Today is expiry and we have had a volatile week and I am expecting nifty to make a move of + or - 100 points on a closing basis.

Today we have hero moto coming out with its numbers.

MY TRADES

  1. All my trades are in a good profit for me. I entered the trades late because of the events which we had this week.
  2. Today is the expiry and I am planning to execute the below strategy in huge volume.
    1. -1 X 14700ce
    2. -1 X 14700pe
    3. +1 X 14500pe
    4. +1 X 14900ce
  3. I am tracking SAIL. I will be doing a strategy very soon in this. I have discussed this in the weekly call yesterday with my students.
INTERNATIONAL MARKETS
  1. Yesterday the dow closed at a record high. However, the Nasdaq closed in the red for the 4th day.
  2. Europe closed in the green.
  3. Today the Asian markets are in the green. Japan, China, Korea were closed yesterday and there is some catch up there. SGX is showing a gap up of 50 points.
FII AND DII
  1. Yesterday FII sold for 1000+cr and DII also sold for 240cr.
EXPIRY SETUP
  1. Nifty has highest OI at 14800ce and 14500pe
  2. Banknifty has highest OI at 33000ce and 32000pe
  3. Max pain of nifty is at 14600 and that of banknifty is at 32700
  4. Nifty may range from + or - 100 and banknifty may range from + or - 500

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