Trade setup for 21St September

 Finally, the markets are falling and correcting. As I told you yesterday, I sold all my portfolio and I am sitting with cash to enter at the right time. Did I commit a mistake or was it a good move? Time will answer that. Now I am having only Vodafone idea and ITC in my portfolio. Nothing else. I will start investing in phases if 17k is broken.

Coming to the markets, the volatility has begun and yesterday you could experience that. The Vix also rose. The option premiums are also good for now. One can easily implement iron fly for this week. I am planning to do that today in Nifty. Banknifty is becoming volatile and better to stay away from that.

Yesterday, most of the stocks ended in the red but Reliance, ITC managed to close in the red. Nifty fell 200 points and banknifty fell 700 points. The major contributors to the fall were metals, banks. Tata Steel fell 10% and was in a temporary freeze. 

China's Evergrande debt default issue is getting worse and lot of analysts are telling that this will have a compounding impact. Some are even telling that it is similar to the 2008 crisis. Anyway, don't believe these analysts. It's their job to exaggerate things.

Now all eyes are on the FOMC meet which will begin today. We need to see if there will be taper tantrums or taper without tantrums or any rate change etc. Now a lot of speculation is going on here. 

US markets fell drastically. Dow fell 800 points and then recovered some and closed by falling 600+ points. The Nasdaq which was already falling for some time also fell drastically. It fell close to 300 points. 

Today some of the Asian markets are shut. China, Skorea are shut. But the hongkong is flat after a drastic fall yesterday. We need to see if this fall will get any follow-through or not. If there is follow-through then one can expect markets to fall even more. Japan opened in red of -2%. It was closed yesterday so it is factoring that.


  1. I closed almost all of my equity portfolio yesterday. Now sitting in cash to reenter again. I will be selling PE of many companies and will take delivery if they come there.
  2. Yesterday I did a video on a wonderful strategy which I have been implementing. There are many who did not get the adjustments. So I thought I will do another video explaining the adjustment part only. I have taken that trade yesterday.
  3. Today I will be implementing the below trade
    1. -1 X 17400ce
    2. -1 X 17400pe
    3. +1 X 17800ce
    4. +1 X 17000pe
  4. I will be selling PE which is 10% from the spot in the below stocks
    1. tcs
    2. tatasteel
    3. reddylab
    4. bajfin
  1. Dow fell 600 points and nasdaq fell 300 points. Its one of the worst single day fall from July it seems. 
  2. Europe closed in the red as well.Even they lost around 1.5 to 2%
  3. Today morning the Asian markets are flat. SGX is suggesting a green opening. 
  4. The US future is in the green. Keep an eye on the US futures. We may goto red if that goes to red.
  1. FII bought for 92cr. This is surprising. I was expecting a huge sell value.
  2. DII sold for 1600+cr
  1. Cruce is at $74.5
  2. $ is at Rs 74