Trade setup of 16th June

 There was another all-time high yesterday. Any bad news is taken as good news. Crude is at $74, inflation is high, but markets are in no mood to fall. As a trader, our job is not to guess the market direction. We just ride the markets.

RSI in nifty is at 70+ which indicates that its overbought. Whenever RSI is 70+, markets either crash or go sideways. Sideways indicates that it will go more higher. So it will be interesting to see how markets will go after 16k?

Now all eyes on FOMC meet. There may not be any hike in the interest but the FED mar reduce buying bonds. This may be a non-event but we need to check how the markets will react.

The covid cases are falling and the economy is opening slowly and the vaccination is also rising. Now many companies are getting to the production of the vaccine. So very soon the covid can be a history. But is it the time for anyone to make fresh entry because markets are at an all-time high?

 We may hit the 16k mark soon, probably in this month itself. Now it will be interesting to see if we take out 16k as easily as we took out 15k?

There is a new govt in Israel and they are believed to go strongly against Palestine. 

Now al the Adani stocks are down after the account freeze drama by the Adani group, ET and NSDL. But some of the Adani stocks recovered from their lows. Now it will be interesting to see if the bull rally will continue or not.

What was surprising to me was that oil-dependent companies like autos, paints shot up yesterday even when the crude oil prices are rising in the world. Asian paints shot up 3%. 

I have a strong feeling that the rising crude will bring the markets down. If crude goes beyond $80 then it will be a problem to India as inflation will be very high.

Now the west is ganging up against China. The EU and the US have joined hands to curb China's abuse.


  1. Yesterday I did some intraday trades and I was able to make a small profit of around Rs8000.
  2. I did not expect 15900 to be crossed so now I am busy doing adjustments. 
  3. I had executed the put backspread expecting the markets to fall but that did not happen and I have added adjustments.
  4. My Zerodha trades are also in danger and the monthly short straddle which I did is also in danger. I may do some adjustment today. I will update as soon as I do in all social media pages.
  5. No new trades were initiated yesterday.
  1. The US is flat as they have an event coming. The tech stocks were under pressure so the nasdaq closed in the red.
  2. European markets also closed in the green.
  3. Today morning the Asian markets are in mild red and SGX is suggesting a negative start.
  1. Crude is at $74. It is slowly inching towards $80.
  2. $ is at Rs 73
  1. I think they are just waiting for the retailers to settle first. Just are just playing with small money. One day they sell and the other day they will buy. 
  2. Yesterday they bought for 600+cr and DII sold for 600+cr