Trade Setup for 4th August

 Finally, the range was broken yesterday after playing on the range for more than a month. Yesterday we did make an all-time high and did close at the highest point of the day. We broke the important resistance of 16k and now 16k will be strong support. The volumes were so strong that it was obvious that the markets are headed higher.

Not only our markets. Even the global markets are in full mojo. The US markets also closed in the green and are almost at their ATH.

Yesterday most of the sectors rallied and it was not a one-sector rally. Reliance, IT, banks all contributed to breaking out of the range. I expected a breakdown but my view was wrong. Now my view has turned and I don't think we will fall below 16k anytime soon. This is infact a roaring bull market. There is no doubt about that. From now any dip should be used for going long-only. You can do this till the US and Indian markets RSI go to 70+.

This was exactly the problem which I was talking about. Usually, the breakouts happen with a very big candle and you will not get the confidence to take advantage of the 

Bharti airtel came out with earnings and it has given better than the estimates. So that was one of the major contributors to yesterday's rally. 

We have SBI results which is pending. Let's see if SBI will take the markets even higher. 

Now a lot of IPOs are coming. All want to make use of the bull market. 

After seeing a bad opening for Robinhood in the US, I thought that the IPO will not perform. But yesterday the Robinhood shot up 24% and closed above its IPO listing price. So don't even think. Just apply for the new IPO's. The probability of you making a profit is higher.

Now trading is very easy. Just keep selling PE. 

SRF and tata steel in which I had sold CE were flat to negative yesterday. I am in good profit in tata steel.


  1. Yesterday I had to run for cover. I had to close all the CE which I had sold and convert that to PE. It looks like this week will be a negative week for me as I lost a significant amount in closing the CE.
  2. The good part is my underlying portfolio is good.
  3. Today I will be closing my tata steel CE which is in good profit. 
  4. I had executed a PE back spread in nifty. I had decided to add adjustment trades to that if there was follow-through today. So I will be doing that as well.
  5. I am adding more to my ITC shares in equity. Looks like it will begin its rally.
  1. The US markets closed with a green of more than 250 points
  2. Europe also closed in the green.
  3. Today the Asian markets were in red especially japan and hongkong. Now even they are in green.
  4. sgx is suggesting a +ve start
  1. Finally,fii bought and they bought heavily. They have bought for 2000+cr and DII sold for just 200cr
  1. Crude is falling which is good for India. Today it is around $72