Trade setup for 16th September

 Another record close for the Indian markets. When the US markets fall, we close in green. When the US markets close in green we close in dark green. The entire world markets were negative for the last few days but we rallied and made new highs every day.

Yesterday we had the cabinet meeting where 100% FDI was allowed in telecom and 4 years of a moratorium was given for telcos with interest. 

Auto PLI schemes were given for auto sector. The PLI was majorly for the new sector which was EV.

Bharti was the man of the match yesterday and shot up around 5% due to the relief. These things happened at 3PM. So today we need to see if there will be further movement in these stocks or not. Even vodafone closed in the green. The banks which had exposure to these sectors like idfcfirst, yes bank also rallied.

Another volatile stock was ZEEL. After rallying 40% on 1 day it shot up another 7% and then closed in the red.

Nasdaq finally closed in the green after falling for 6 days. But Indian IT companies are not resting. TCS has made a high and the market cap is now more than $200 billion.

North Korea has tested a ballistic missile and many countries have now condemned it.

The UK inflation is at 9 year high.

One technical thing to keep an eye on. RSI of nifty is at 84 which is an indication of an overbought market. Now the risk-reward is not in the favour of the bulls. But we do not short now. We wait for the right time and till we get an indicator.


  1. I had sold some quantity of 17450ce at the beginning of the week. But the market shot up and yesterday it became ITM. I had to do some adjustments. So converted it to a short straddle. I will manage that today if the market rises.
  2. Today is expiry. I don't have much to do as most of my money is in monthly expiry and a small in weekly expiry. 
  3. I will be executing call ratio spreads in zeel today. I forgot to do that yesterday. 
    1. +1 X300ce
    2. -3 X 310ce
  1. The US markets closed in the green. Nasdaq finally came to green after many days of red.
  2. Europe was in red as UK inflation data was bad.
  3. Today the Asian markets are in the red. SGX is flat.
  1. Yesterday both FII AND DII have bought in the cash market. FII bought for 232cr and DII bought for 167cr.
  1. Crude is rallying and is at $75 as US inventory is down.
  2. USD is at Rs 73.5
  1. 17500ce has highest OI and it was the highest OI yesterday for the entire day. So markets may close below that. If any gapup then you can use that to short the markets. I will sell 17600ce if to gaps up.
  2. if markets fall at open then I will sell some pe whose preimuns are 8-10 in nifty.
  3. Nifty may range from 17400-500 provided that there is no fresh move n telecom and auto sector