Trade setup for 29th September

 This is the problem with the bull market. The correction that happens will be very sharp. After that, you will not get the confidence to short the markets. Yesterday was a very volatile day. I thought it would be a trending day and markets would end lower. But surprisingly the bulls came back strongly in the last hour and took the markets higher. Nifty recovered 100 points and banknifty recovered 500 points. 

When the index falls 200 points, almost everyone is a loser. However, the major losers were the banks, IT, pharma etc. Reliance was in green. 

Bajaj finance fell almost 300 points. 

Yesterday's low will be critical. If that is broken then we may head lower. We have not had a correction in a long time now and the rally on the upside has been brutal. A 10% correction will remove all the instability and will give an opportunity for fresh money as well. Let's see if that happens. As traders, we don't predict the markets, but we react to the markets. 

Yesterday, Powell told that the inflation may continue for some time. That was enough for the US markets to collapse. So does this mean that there will be an interest rate hike soon??

Yellen is asking the US to increase the debt limit otherwise there are fears of people defaulting. 

The 10-year yield rises and is the highest from June. This caused panic in the markets worldwide yesterday and Powell statement just added fuel to the fire. $ index is again back to 94.

In China, there are many factories that are shut due to power shortages and raw material shortages. The Evergrande issue is another factor that is haunting the markets. But you never know what happens in China. What happens in China stays in China.

The important part was the vix. The day before yesterday it went up to 18 but there was not much volatility. Yesterday, it was close to 19 and there was huge volatility in the markets. CBOE vix shot up 25% and is at 23 now.

I wonder how all good news and all bad news come out at the same time. Sometimes markets do surprise us.


  1. For the first time, I am happy with the trade which I did some days back. I did sell almost all my portfolio and sold a huge quantity of PE. Now, most of my sold stocks are below my sold price and PE are almost 0 as tomorrow is expiry. I will be rolling my PE to next month today. Almost all of my monthly trades are also in green.
  2. Today when markets open in the red, I will be doing the below trade for tomorrow expiry.
    1. -1 X 17500pe
    2. -1 X 17400pe
    3. +2 X 17000pe
  1. The US markets fell due to a huge sell-off in the bonds. Dow fell more than 500 points. Nasdaq fell close to 400 points. The tech share lost more than 2-3% 
  2. Even Europe lost more than 1-2%.
  3. Today the Asian markets are also in the red. The US futures are in mild red for now. SGX is suggesting another 100 point gap down today.
  1. Crude cooled off slightly after going above $80. Now it is close to $79
  2. $ is at Rs 74


  1. FII sold for almost 2k crore and DII bought for just 160cr