Trade setup for 1st june



Yesterday's man of the match was again Reliance. It shot up another 4% yesterday. It single-handedly took nifty higher. Banks and metals also moved and gave some support to the market. Today we have ITC result and it is expected that ITC will move higher after the results as it has been in this + or - 200 for a long time. 

Nifty closed in the green for 3rd day. From today intraday leverage is almost nill. It will be interesting to see the volumes and slippages.

Indigo asking its employees to take leave without pay as passengers reduce and no biz. Similar thing happening with Spicejet also.

The Covid cases are spiking in Malaysia, Australia. These countries are now going on lockdown again. I am getting vaccinated this weekend. So make sure you get vaccinated soon. That is the only way to get rid of this virus. In India, the cases are falling gradually.

China had told that their citizens should not have more than 2 children but after their younger population has reduced and now it has modified the law and has allowed having up to 3 children.

Now HDFC has got a new competitor. Its PNB housing as Aditya puri is on the board and Carlyle group has invested heavily in this. Yesterday it was in an upper circuit. This circuit may continue for some more days.  

Today we have the Auto data. It is expected to be bad as many cities were in lockdown. The question is how bad?

India's GDP contracted to 7.3% in 2020-21

India Vix is falling and is now around 17. I think it is at this after a very very long time. Falling vix indicates that there won't be much zig-zag movement and you can expect the trend will continue and if there is a reversal then there will be an indication. When Vix was above 20, the nifty direction was not clear and could not be judged. 

MY TRADES

  1. I have executed the below trade in Reliance
    1. +1 X 2300ce
    2. -1 X 2340ce
    3. -1 X 2360ce
    4. -1 X 2380ce
  2. Today I am planning to do a trade-in ITC
    1. +2 X 220ce
    2. -1 X 215ce
    3. -2 X 235ce
    4. -2 197.5pe
  3. My butterfly and ironfly trades in nifty will be trouble today. So I may have to do a lot of adjustments today.
INTERNATIONAL MARKETS
  1. The US markets were shut yesterday.
  2. European markets closed in the red. 
  3. Today morning the Asian markets were in the red. Now they have given some of the loses. SGX is suggesting a gap of +50 points.
FII AND DII
  1. Now FII is coming strongly. Yesterday they bought for more than 2000cr and DII bought for 179cr.
CRUDE AND $
  1. Crude is now above $70 which is something not good for India. But the sentiment of opening the economy after covid will take over this for some time and markets may not creash even with higher crude. Also we are good till it is within $80. Probably markets may note once that is taken out which may not happen immediately.


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