Trade setup for 04th June

 Yesterday was the first expiry after the margins are reduced. There was no liquidity and there was less market depth. We could feel it in the premiums as there were slippages. Also prima facie, it looks like even manipulations of prices can also happen. Reliance shot up almost 35 rs, then it went to red, then again closed in the green. If manipulators can move a big share like Reliance moves like this, you can imagine how easy it is for them to manipulate other small stocks. Anyway, we have to get used to it as SEBI uncle is in no mood to listen. Now you have to be 100% hedged. That is the way to go.

Yesterday the expiry was boring as there was no margin. Nifty fell slightly and in the end closed at the high point of the day. This shows that the markets are strong and every dip was being bought.

The US markets opened in the red. But reversed and closed in the flat. The autos gained in the US markets. The tech was the losers so the Nasdaq lost more than a per cent. The US is awaiting their jobs data and the markets are optimistic about the numbers.

The covid cases are falling and we are making new lows every day which is good. The market is optimistic about opening after the covid is over.

The India Vix fell 10% yesterday. The nifty ATM straddle option pricing was at 60. I think it was around this before covid.

Today we have the RBI meet and it's expected to be a status quo which will be the 6th consecutive status quo.

Petrol is going up and in Mumbai it is Rs100.


  1. Yesterday, I did a video to show the status of the strangle and straddle which I had done on Friday. The strangle which I had done closed in green with a profit of Rs 7000+. The straddle which I had done for the monthly expiry is also in green but it is not closed. But I screwed up in other trades and lost for the week. 
  2. Today I will trade after the policy. I think the markets are slightly overbought. But don't short till you have confirmation. Let's see if the rbi gives the trigger.
  1. The US closed in the flat. The Nasdaq closed in red as techs fell drastically yesterday.
  2. European markets closed in the red.
  3. Today the Asian markets are in the red. But most of the markets are off their lows. SGX is indicating a lower start. It all depends on the policy outcome today.
  1. FII bought for 1000+cr and DII sold for 278cr.