Trade setup for 22nd July

 Now suddenly everything has become positive. This is not positivity. This is volatility. One day markets fall as if the world is coming to an end. The next day everything is recovered. This is not just happening in the stock market in India. It is happening everywhere in the world. This is happening in the crypto markets, oil markets also. Frankly, taking directional calls now is very difficult because we are seeing sharp recoveries. 

You can see dow. Almost everything is recovered from the big fall we had at the start of the week. 

The ping pong seems to continue. The range is still 15900- 15600. You can see the ping pong which nifty is playing. I thought 15600 would be broken at least this time. But it looks like we have to wait for more for this range to be broken. It's good. The longer this range lies, the stronger will be the breakout or breakdown. We do not take aggressive trades till we get confirmation. Today I will be explaining this in detail in a youtube video. So do watch that.

This quarter is a miss quarter as most of the companies which have come out with earnings have missed the market expectation. This miss is not that the companies are performing badly. The expectation is high due to the high valuation which the numbers cannot meet.

The covid cases are rising again in the world. Now the 3rd wave fears are kicking in. Not sure what will be the trigger for the markets to crack or rally. 

Crude is also very volatile. One day when OPEC decide to scale production, it falls 8% and then it recovers most of the fall within few days. Now we are again above $70. 

Today we have HUL and bajaj auto coming with results. Let's see if they beat the estimates or not.

The cryptos are back. The cryptos fell drastically in sometime and most of them had left hope in this. The saviour of crypto is back. Elon musk told that Tesla will accept bitcoins and then there was a rally in the cryptos.


  1. My bajaj finance trade is in green. I will be able to close if green if there is no major upmove today else I will have to do adjustments for the last week of the expiry.
  2. My Zerodha trade is in a minor loss. I added adjustment and today's gap up may put the adjustment trade in danger. Let's see if I can close this week in profit. I will have to do some firefighting today.
  3. For today's expiry, I will be executing the below trades. I will be doing this aggressively.
    1. -1 X 15600pe
    2. -1 X 15800ce 
  1. The world markets are again back to their mojo. The US markets recovered all the fall which it had in the starting of the week and is positive for the week. The US futures are also in the green today. 
  2. Europe closed in the deep green yesterday.
  3. Today the Asian markets are also in the green. SGX is suggesting a gap up opening.
  1. Crude fell from $75 to $68. Now it has rebounded from $68 to $72. 
  2. $ is Rs 74.5
  1. The holiday has created havoc in the options market. Today all the calls which were sold will be in great danger and today they will run for cover.
  2. Nifty has highest OI at 15800ce and 15500pe
  3. Banknifty has highest OI at 35kce and 34kpe
  4. Nifty may range from 15700-15800
  5. Banknifty may range from 34500-35k