Trade setup for 24th September



 These markets are on steroids. The US markets cheered the FED outcome and rallied 300 points(dow). Even we rallied close to 300 points but our index is half of dow. Yesterday it was a one-sided rally. Sensex is almost at 60000. It rallied almost 1000 points. Banknifty shot up almost 850 points. Nifty rallied almost 275 points. 

The major contributors were banks, Reliance, metals. The bajaj twins shot up close to 5%. Any stock is rallying like there is no tomorrow. There is a huge inflow by retail traders. There is no point in thinking of caution because the markets don't seem to care for any kind of caution. Just move with the flow.

Again this week also was a bad week for me. All were good till yesterday. I didn't think that 17800 would be broken. I did a lot of adjustment but still had to close the week in a loss. Now we are in the last week of the monthly expiry and you can expect this week also to be volatile. It looks like even 18k will be broken with ease.

Banknifty is back to its record close. This index had a lot of room to cover. So shorting banknifty is not a good idea. Now we are closing in the green for 3 consecutive days. Let's see how the markets will trade this week.  

Accenture came out with good numbers and they have told that the next year will be good. Other than attrition numbers, everything else was good. So Indian IT companies may rally today.

Zee entertainment fell 5% after rallying. It's better to avoid these news-driven stocks. 

The Evergrand group did not pay the debt which it was supposed to pay yesterday. They still have 30 days to settle things. Now the hope is that this issue does not cause a ripple effect on the world.

Modi is in US and will be meeting Biden to discuss many things.

MY TRADES

  1. In the trades which I have taken in the monthly expiry, I still have the room till 18k. I will have to do aggressive adjustments if that is broken. I am scared to sell puts as well because if there is a fall then the fall will be equally brutal.
  2. The PE of all the stock options which I had sold is in wonderful profit now. I am planning to shift them to near strikes. In fact, I have made more profit here than by holding the shares. 
  3. This week, I will keep the volumes low.
INTERNATIONAL MARKETS
  1. The US markets ralied yesterday. Dow gained 500 points and nasdaq gained 155 points. 
  2. Europe also gained more than a percent 
  3. Today the Asian markets are flat to positive. SGX is flat. Today is Friday and there might be some profit booking in the second half.
FII AND DII
  1. Yesterday both the FII and DII were net buyers. FII bought for 350+cr and DII bought for 1175cr
CRUDE AND $
  1. Crude is now at $76
  2. $ is at Rs 74


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