Trade setup for 8th June

 Now everyone is interested in going to space. Jeff Bezos is now planning to go to space.  

The markets are in very strong hands. Each and every dip is being bought now. Yesterday we did get a dip and that was immediately bought. So this is not a market to short. Wait for the dip and seek opportunities to get into the market. 

Nifty closed at another record high. Now, this has become common as it is making new highs every day. The next target is possibly 16k. India Vix is falling. Trading in fno in this condition is slightly difficult as premiums are less and nifty is making wild moves. It's difficult for neutral trades to end in green. So trading using price action and trends will do the magic. 

There are sectorial rotation which is happening. The metals corrected, the autos corrected. Banks are still in consolidation. This kind of rotation is good for a long term bull market. But still, there is a word of caution as we have rallied a lot in the small time frame. We have made around 800 points in less than 15 days which is a bit too much. The problem in this kind of rally is the correction will not be a gradual one. There will be 1 day where nifty will lose 300 points. Catching that will be very difficult. 

Yesterday bajaj finance fell close to 5% after the company came out with a  negative report. The major index mover was Reliance. It shot up around 30 rs. 

Yesterday the option premiums were a little high as PM Modi told that there would be a press conference. Now everyone will be vaccinated free of cost and it will be the responsibility of the centre as the vaccine will be given for free to states.

The US has recovered most of the ransom given to the hackers of the colonial pipeline.

Russia is planning to move away from USD and has told that they will not have USD dependency as the US is putting a lot of sanctions on them.


  1. Yesterday, I did a video on how to adjust a straddle by doing synthetic futures and how it reduces margin and you will not have daily MTM problem. The live trade which I did might need this adjustment. I am planning to do that if 15800 is crossed today. If that happens then I will 
    1. +1 X 15800ce
    2. -1 X 15800pe in monthly expiry
  2. I expected the markets to correct a little so I did a backspread, but markets are in no mood to fall. I will be doing an adjustment today for that.
  3. I had executed butterfly on Friday which is my normal every week trade and that is in good spot for now. Any fall will give me a wonderful profit and I can think of closing it.
  1. The Dow closed in the red. The US futures are in the green today. The techs have come back and nasdaq closed in the green.
  2. European markets closed in the green. 
  3. The asian markets are in the green. Japan quarterly GDP was better than expected.
  4. SGX is suggesting a gap of 50 points.
  1. FII sold for 186cr and DII bought for 900+cr. There was a block deal of TVS. So that has to be factored in the DII data.
  1. Crude is at $71
  2. USD-INR is at Rs 72.8