Trade setup for the 3rd August

Again we are at the upper end of the range. Will the ping pong continue or will be breakout? Its really surprising how bad cues globally emerge when we are at 15900 and how good cues come when we are at 15600. Sometimes I feel that someone is sitting and manipulating things :)

Again, we had a good rally yesterday which was contributed by Reliance, Autos and little by banks. Banknifty is the one which is weak. But the problem is that it is not crashing and not shooting up as well. The dips are getting bought.

The midcap rally is strong. Midcap index is making new highs and all dips there are getting bought.
SRF again rallied 5% yesterday. I have a call ratio spread in that which is in minor loss now. There is a lot of room for me to do adjustments, so not worried.

Dr reddy and other pharma have started to fall again. Lets see if that will fall more and take nifty lower.

Now IPO markets are on fire. Many new companies are coming for IPO. They are just taking advantage of the bull market.

The covid cases are rising now, especially in the US. So people are scared that this might be a start of 3rd wave.

Maharashtra is now easing curbs which they have put and reopening some of the cities, especially Mumbai.

  1. The tata steel and bajajfinance trade which I took are in good profit.
  2. Dr reddy trade is in a small loss. I need not worry as I have sold PE and will take delivery if it falls more.
  3. In my zerodha account, I sold 1 lot of 16200pe to hedge the 15750 straddle. 
  4. My trades are low in volumes as the trend is not clear for me. I will wait till the trends are clear.
  1. The US markets closed in the red.
  2. Europe closed in the green.
  3. Today the Asian markets are in the red. SGX is suggesting a flat to negative start. Again the Chinese markets are falling. Hongkong is 1.5% down
  1. The selling continues whether nifty is rising or fallin.
  2. Yesterday the FII sold for 1500+cr and DII bought for 1500+cr