Trade setup for 11th August

The markets are very volatile. The option premiums are not matching the volatility. Yesterday nifty went up to 16350 then it fell to 16200 and then again recover to goto 16300. It was a sharp move that is happening in the markets. Nifty made an all-time high again.

Trading intraday is very difficult as SL hunting is happening on both sides.

Now it is slightly difficult to take non-directional trades because when there is a sharp move, then you will be forced to do adjustments and then the adjustment trades come in danger when the market reverses. 

Yesterday, in the first half, all looked good. Reliance, IT looked promising. In the 2nd half, reliance fell and the markets also fell.

Now there is some serious correction happening in the smallcap and mid-cap. So now it's better to close all positions and wait for the next direction of the market. Midcap fell 1% and smallcap fell 2%.

The US Senate passed the infrastructure bill which will boost the US economy. The US steel shot up as they will be one of the major beneficiaries. 

The violence in Afganistan is rising and India has asked all its people to return to India soon.


  1. The Put ratio spread which I did in Adani ent is in a minor loss. I had to do some adjustments by selling some calls. Will add more legs to this if it falls more.
  2. In my Zerodha account, I had to do adjustments to the straddle which I had. The adjustment was inevitable as there was sharp moves in the market.  Let's see if I will be closing it in loss or will I be able to get any profit.
  3. The SRF and Bajajfinance trade which I took are in good profit. I am thinking of closing them if markets fall today as I will be getting a good profit.
  1. The US markets were mixed. Dow closed in the green but nasdaq closed in the red. 
  2. Europe was flat.
  3. Today the Asian markets are mixed where some are in green and some are in red. SGX is suggesting a flat to +ve start.
  1. FII sold for 200cr and DII bought for 600cr
  1. Crude is now again back to $70+