Trade setup for 23rd August



 The markets seem to digest all bad news. Even taper tantrum has been taken positively and the US markets gained on Friday. That's how the bull market seems to work. 

The covid cases are rising in states like Kerala. Now the MPC committee is thinking of taking this seriously because many sectors like hospitality and tourism are impacted by this pandemic and are planning to provide stimulus to them.

Looks like the fall which we had on Friday will be recovered today and markets will move on.

The chaos in Afghanistan is rising. There are some very bad visuals in the news.

We have the Jackson Hole symposium this week. This is an annual meet that FED has and this is watched carefully by all financial people and the outcome can have an impact on markets. This time it is happening virtually due to covid.

Due to liquidity issues, there is a huge slippage, and a lot of freak trades are happening. 

The weakness in the broader market still persists. Today's move will be interesting. We need to see if the gap will be sold into or will the rally continue.

Bajaj finance is just rallying like anything. Its now close to 7k .It has moved swiftly from 6k to almost 6700 now. I have sold 7000ce for this expiry. 

HDFC bank was in the green on Friday even when banknifty was in red. So today the rally in this can continue and this will take the banknifty higher.

MY TRADES

  1. I sold huge quantities of 16000pe in my account. Today I will be converting that to strangle.
  2. I have now moved to an intraday trading strategy. On Friday, I had to close the day by losing around 4000. Let's see how the strategy will work today.
  3. From today I will be closing some of my stock options as margins will be increased.
INTERNATIONAL MARKETS
  1. The dow recovery on Friday has boosted the sentiment of the world markets. Today morning all the world markets are in the green.
  2. Hangseng, japan are all more than 1.5%. 
  3. SGX is suggesting a gap up of 150+
FII AND DII
  1. This number is not something that is not convincing. On Friday, they sold for 2200+cr and DII bought for only 119cr
CRUDE AND $
  1. Crude is at $65. It's falling which is benefiting India. 


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