Trade setup for 28th July

 Now the China's fears are increasing. In just 2 days the Hongkong index has fallen 10% due to China's crackdown on the tech and education sector. All the tech stocks which are listed in the US are sold heavily. 

Yesterday in the first half the markets were in the green and then it fell close to 200 points in the 2nd half when hangseng opened and lost 5%.

Yesterday, the fall was led by Reliance and the pharma sector. Everything in the pharma was well till Reddy came out with results. The results were bad and the stock did hit a lower circuit of 10%. This caused panic in the other pharma and the pharma index lost 3%. The banks and metals supported the markets. Metals are on fire as china is planning to put some tariff on the metal export. 

Today we have earnings from Maruti, nestley, phizer, ubl. Let's see how phizer earning will affect the pharma sector. Will it help in recovering or will it be salt on the wound?

The other world markets did not fall so badly as this. But there was clear global pressure on us. 

Yesterday in the US, many tech companies came out with the results and all were good. Apple reported a 50% rise in iPhone sales. But they issued a chip shortage issue in the future which caused the stock price to close in red.

Microsoft has beaten all estimates and they have given an optimistic view. Even google results were good. They reported 69% rise in ad revenue.

Today we have fed meet outcome. Tomorrow is expiry and we will have fed meet outcome. So be careful if you are carrying positions.

Today morning the Hongkong markets are up by 1%. Now it's already into the red. So the world markets seem to be slightly calm. We need to wait for the 2nd half because the fall yesterday happened in the 2nd half.


  1. I closed my Zerodha 15800 short straddle with a profit of 1600. Today I will execute some iron condor for tomorrow's expiry.
  2. My trades were in danger and I had to do a lot of adjustments.
  3. If Reddy falls today then I am planning to sell some deep OTM PE. I am willing to take delivery if things go wrong.
  4. I think the metals have rallied a lot. For August month, I will be doing the below trade
    1. -1 X 1500ce
    2. +1 X 1600ce
  1. The Asian markets are very volatile. HKG was in green in the morning and has already moved to red.
  2. The Dow was flat yesterday but the tech's closed in the red but there was some recovery after the tech company results.
  3. Europe also closed in the red. 
  4. SGX was in the green of 45 points but after hkg falling down, even that has moved to the red.
  5. Today 15700 is support. We may head lower if that is broken. Anything can happen tomorrow as we have the US fed.
  1. It was obvious that FII would have sold yesterday. They sold for 1500cr and DII bought for only 750cr
  1. Crude is trading at $73
  2. $ is at Rs 74