Trade setup for 01st October

 Finally, we closed the September month with a green candle. The way the markets were falling in the last few days, I would not have been surprised if we had closed in the red. Anyway, it was a good month for the bulls overall. For 2 consecutive months nifty shot up 1000 points. Now it looks like the momentum may not continue. 

The markets are very volatile. It has now become difficult for guessing the market direction, especially intraday. Every day there is a gap down and later the dips are getting bought. This has become the trend of the market. 

Yesterday was a wonderful expiry. I had taken huge positions in 17700 straddles on Wednesday and that worked in my favour. As it was expiry it was easy to manage. Frankly, without intraday leverage by brokers, now trading is no more a lucrative game than it used to be. Yesterday, I was so bored that I started watching a movie on Netflix. Now trading is money-driven biz. More the money more will be the profit as trading is now an open secret which everyone knows.

Now it looks like the bad news is coming one after the other. First, it was the semiconductor issue, then it was the Evergrand issue, then inflation and rate hike fear, then the china power issue. Let's not jump to conclusions and short the market. Previously it has happened like and then suddenly markets moved ahead like nothing happened. Now it is time for one to exit their positions which is what I have done. Let's see if 20 DMA will be protected or taken out. I will be shorting the market once 20 DMA is out. 

The US markets closed the last day in red and for the first time after 2020, the US markets closed in red for the quarter. Yesterday the Dow fell more than 500 points and Nasdaq fell more than 60 points. 

Yesterday the NCLT told that zee should call for an EGM.

Today we have the auto sales number. 

Biden signs the temporary funding bill to prevent govt shutdown.


  1. My put back spread which I had taken for the month of October is in wonderful profit. I have done a video on that in my youtube channel. You can check out that strategy where I have explained everything. Will be coming out with a video today on that strategy's further explanation and clarifying some doubts.
  2. I am really surprised how I got the timing right. I knew that markets were overbought. But that was the feeling I had from 15000. So I was slowly selling my shares in a phased manner. I still had a big chunk of equity. When nifty shot another 1000 points in this month, I took the call and sold my entire portfolio and sold PE. I did tell that in the blogs as well. Now markets have fallen and all the shares which I sold are below my selling price except reliance. I will be selling more PE today in this month expiry. I may start to buy slowly when markets are below 17k.
  3. I will be adding more to my pe back spread. 
    1. +2 X 17400pe
    2. -1 X 17500pe
  4. Will be selling PE in Reliance, tata motor, reddy lab, bajfin, 


  1. The US markets fell drastically yesterday. Dow lost 500 points. Is this the end of the bull run?? This is what we are feeling for every fall. Then the bulls will come and take the markets higher. Let's see what happens this time.
  2. Europe closed in the red.
  3. Today the Asian markets are in deep red. Japan is down by 2%.
  4. SGX is suggesting a 150 point gap down
  1. FII sold for 2200+cr and DII was flat. 
  2. FII are selling continuously for many days now. Do they know something which we do not know?
  1. Keep an eye on crude and gold. If any bad thing is supposed to happen then this one will be the most impacted one and you can see it shoot.
  2. Crude is trading at $78
  3. $ is at Rs 74