Trade setup for 03rd June

 Today is the first weekly expiry with a reduced margin. The margin available is negligible. So making adjustment for huge movement can be difficult. SGX is suggesting that we will make a huge gap up of close to 100 points. Today we will be making another new high. 

There is a lot of outrage against SEBI from the trader's community as the intraday margins are gone. Personally, even I am feeling bad as my profits have also gone down. But SEBI is in no mood to listen to any brokers or traders. So most likely the circular will not be reconsidered. Adapt and move on. When I spoke to traders and brokers from a neutral point of view, there is no valid justification by traders as to why intraday margins should be given. SEBI will not buy the arguments which were made.

Yesterday in the last hour, we saw a huge move in banks, Reliance. Reliance shot up 30rs and managed to close above 2200. The highest OI was at 2200ce. Today it looks like these call writers will have to run for cover. 

ITC came out with results and it has made sure to behave to the tunes of the memes. It is trying to come around that 200 mark which is its favourite mark.

Motherson Sumi is another company which has come out with splendid results and the stock price has shot 13%. It is one company that one can think of investing in the long term. Use any dips if it happens in the future to buy these stocks.

Reliance is on fire. Mukesh Ambani says that they have a strong balance sheet after the fundraising. 

In Israel, it looks like the PM will be removed by the coalition of oppositions


  1. I did a live trade in weekly expiries and I had sold 15700ce which will be in danger today. If it is in profit, then I am thinking of closing that else I will do the martingale strategy.
  2. I thought markets will fall after making a massive move of more than 500+ points. So I took some bearish trades. Now they are all in trouble, but it is manageable.
  3. The straddle which I have taken for the monthly expiry is still there without any adjustment. 
  4. Yesterday, in my Zerodha account, I sold 15700ce. Today even that is in danger. I will close it and book loss if 15700 is crossed.
  1. The US markets were in flat.
  2. Europe was in green
  3. Today the Asian markets are in green.
  4. SGX is up 70 points.
  1. Crude is at $72. Keep a close eye on this.
  2. $ is at Rs 73
  1. Nifty has highest OI at 15700ce and 15500pe
  2. Bnaknifty has highest OI at 35500ce and 35000pe
  3. Nifty might range from 15700 to 15600. If today's open is broken on the lower side then we may fall. If 15700is broken on upside then there can be a massive short covering rally.