Trade setup for 8th September

 Yesterday we made another new high but we were not able to close at the high's. The markets fell in the 2nd half and closed in the red. Markets were very volatile. Initially, it gapped up, then fell and the dips were bought, then in the second half, it fell and closed in the red. 

I did a video on 9:20 straddles and why I am not a huge fan of this. Yesterday was the day where the 9:20 straddle would have failed badly. Days like yesterday is not something that happens once in a blue moon. It happens regularly and regularly your SL gets hit. That's why I am not a fan of this and will not be using it. You can do your analysis and see if it works for you. I am willing and happy for a healthy debate that can be beneficial mutually. 

Coming to markets, yesterday it was RIL and HDFC which supported the market. As I told sometime back, there will be someone or the other that will support the market. RIL rallied in the first half but gave up most of its gains in the 2nd half. The housing finance sector is gaining traction. Can fin homes, HDFC and some of the other housing finance started rallying.

 The telcos are also in the limelight after Sunil mittal gave that press conference some days back. Now even Vodafone is also rising. I will be adding more to my portfolio once it crosses 10rs. Today there will be a cabinet meet where they might get some relief.

SEBI has introduced T+1 settlement from T+2 settlement. Still, it's not clear how the entire process happens. India is one of the countries which has introduced this. Not many countries are doing this. So it is a great achievement by SEBI and exchanges.

Bitcoin fell 10% after El Salvador starts accepting it as a legal tender. Not sure why it fell instead of rising? El Salvador bought 21 million bitcoin.  Not sure how a country can be run with such a volatile currency. 

There was another freak trade today where 36000 PE was traded at a high price. I think now this is going to be the norm and no point discussing these things anymore.

Ford has managed to poach Apple electric car chief. :)

The US markets opened after the holiday and it closed in the red. The covid cases are rising and the delta variant is causing slight fears. The Nasdaq closed in the green and made a record close.

UK president is thinking of rising taxes due to covid. Soon, every country may follow this. Ultimately, it is govt that wins.


  1. I executed a call ratio spreads in Reliance yesterday. I did share the trade in twitter, FB and telegram. 
    1. +1 X 2500ce
    2. -2 X 2600ce
    3. -2 X 2560ce
  2. The butterfly which I did in monthly expiry is in good profit. It looks like markets are in the consolidating phase now. Even though intraday volatility is there, for a longer timeframe, nifty may not make a very huge move. So short straddle or butterfly in the monthly expiry will work well.
  1. The US markets fell but nasdaq managed to close in the green and it did make another record.
  2. Europe was in the red.
  3. Today the Asian markets are mixed and SGX is suggesting a +ve start.
  1. Crude is falling and is now at $72
  2. $ is at Rs 73.3
  1. FII sold for 145cr and DII sold for 136cr. So it was a flat day for them.