Trade setup for 17th September

 What a move in the markets !! All kinds of surprises were there in the market. We rallied when the most global markets were down. Everything is confusing in the markets now, at least for me. Yesterday again the markets rallied and closed at a record high. Finally, even banknifty managed to make an all-time high. It was expected that it would make an alltime high soon as it was pending for a long time. It finally happened yesterday. Frankly, I did not expect that to happen yesterday as we rallied day before yesterday as well. 

Telcos rallied due to obvious reasons. I did fear this as the telco news came at 3PM the day before yesterday and it had an impact yesterday. Vodafone shot 25%, Reliance shot around 2%.

Bad banks will be setup which will help banks and this was a welcome step and this also triggered the banknifty. The banknifty got a double shot, one from telcos and the other from bad banks. Bankifty rallied 800 points. I did not expect this move suddenly on this yesterday. 

Yesterday the VIX did shoot up due to FM press meet. Today that might cool a little 

This is a bull run and everything should run. Finally the meme stock ITC also rallied. It was a silent stock for a very very long time and even that rallied around 7% yesterday. I am having ITC in my holding for a long time. I did buy it at a very low price. Luckily, I do covered call in this every month and this month I did not do as my margins were blocked in various trades and I decided to take a skip this month and it did pay off.

SRF which has a bonus is also rallying. It is now close to 11500. It was at 2k one year ago. I thought that there would be a slight fall after the bonus news was out. But that did not happen. I thought of buying some if it comes below 10or 9k but looks like that won't happen anytime soon.

The US markets opened in the red and recovered all the fall and closed in the flat territory. In fact, Nasdaq closed in the green. The US retail sales rose which shows that the consumption is improving. This took the US markets higher.

We now have Finnifty weekly expiry on Tuesdays. The exchanges did this as it was illiquid. Maybe this may increase the liquidity. For traders, now they can have 2 expiries in a week. I wish we had this when we had the margins. 

VIX shot up yesterday. So the trades which I took in the monthly expiry was also in the loss



  1. I had to close the week with a loss of more than 1lak. As an options trader, it is difficult if markets rally continuously or fall continuously.
  2. The butterfly trade which I took in monthly expiry is also in slight danger. I will start adding adjustment trades from today.
  3. No new fresh trades will be added. I will wait for the markets to cool some.
  1. The US markets closed in flat. But they did fall and then recovered.
  2. Europe also closed in the flat to positive.
  3. Today the Asian markets are in the green. SGX is suggesting another 100 point move today.
  1. FII bought for 1600+cr and DII sold for 800cr
  1. Crude is at $75
  2. $ is at Rs 73