Trade setup for 7th September



 Yesterday was another record closing day. Now it has become a norm. Nifty is closing at record highs. Now we are close to 17400. The major contributor in yesterday move was again Reliance and IT. Reliance shot up when the news broke that they bought a stake in Strand life science. But in the 2nd half, reliance saw some selling and it did not close at the highs. So more rallies in Reliance may not happen. If there is no follow-through today then it is time to sell CE and enjoy the premiums. So do this after 2:30 today.

Nifty is designed such that its probability to fall is less. Some or the other sector will stand up and provide support. It's either metals, IT, banks or reliance. Yesterday the banks did not perform. It was IT and reliance. Now aluminium is becoming dearer as the army has taken over the country called Guinea in Africa which is one of the major producers of Aluminuim. Because of this, production in China is also disrupted. So aluminium stocks like Nalco, Hindalco are rallying.

Now many sectors are back to its pre covid levels. Now we have a festive season. So appeals retails, aviation are expecting to be back to pre covid state. Colleges are also opening and education loans are also getting pre covid demand. But let me tell you, all these are factored in the markets. Markets did not simply rally from 12k to 17k. The rally did factor all these. 

Yesterday the American markets had a public holiday. So not many cues from there. 

MY TRADES

  1. I have taken trades in the monthly expiry. I have executed the butterfly strategy in my accounts and my client accounts aggressively.
    1. +1 X 17500ce
    2. -10 X 18000ce
    3. +9 X 18500ce
    4. +1 X 17300pe
    5. -10 X 16700pe
    6. +9 X 16000pe
  2. I am waiting for a minor correction so that I can take trade in stock options.
  3. If there is no follow through in RIL then I will sell some ce or will take some ratio spreads.
    1. +1 X 2500ce
    2. -1 X 2600ce
    3. -1 X 2660ce
INTERNATIONAL MARKETS
  1. Yesterday the US markets were shut and today the futures are in mild green.
  2. Europe was in green/
  3. Today the Asian markets are in the mixed. SGX is flat
FII AND DII
  1. FII sold for 589cr and DII bought for 550cr. FII sold after a long time. Lets see if there is a follow.
CRUDE AND $
  1. Crude is at $72.5. Now all analysts are telling that it will goto 65
  2. $ is at Rs 73


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