Trade setup for 9th September



Today is the last day of the week as tomorrow is a holiday. Now nifty will be in a sideways market for some time as we have had a strong rally. Again I am expecting a small correction. But nifty as usual may continue its rally. The point is not timing the markets right which nobody can do. You execute a strategy where you make a wonderful profit if the market dances to your tunes else you make a decent profit if it doesn't. Put back spread is the strategy that I am implementing. I just need to implement this continuously month after month with patience and then there will be a month where markets will fall and my patience will pay off. Trading requires patience. 

Coming to markets, it was another volatile day.  Nifty fell initially and there was a huge buying in the last hour and markets managed to close in flat territory. As expected, RIL started falling after a huge rally. The trade which I did and shared in social media are in a profit for now.

Now the best trades which will be in your favour are executing call ratio spreads in bajajfinace and RIL which I have already done.

Now the banks have started to rally. But the broader picture is still weak. It's difficult to take a short trade on banknifty as it has not yet made its ATH. 

Yesterday Kotak bank started its rally and gained. That was the stock that was not performing and now even that has begun to perform. Let's see if there will be follow-through. 

The cabinet passed the textile PLI scheme and it was welcome by all. There was a hope that there would be some relief for the telecom sector, especially for Vodafone-Idea but that did not happen and there was no discussion on this. The Vodafone stock was green in the morning and turned red after the cabinet meet. So very soon you can expect the govt intervention in the Vodafone case. That's the hope anyway. Stay invested if you have. It's more of a lottery play. 

MY TRADES

  1. Yesterday I did some intraday trades and was able to close the day with a profit. I have carried most of them today as it was in a safe position. 
  2. There are no new fresh trades which I have taken as most of my money is deployed. Now I just need to monitor and take action if necessary.
  3. Most of the trades are in safe zone for now. I hope it stays this way.
INTERNATIONAL MAREKTS
  1. The US markets closed in the red. The techs in the US markets also closed in the red. Now DOW is falling for 3 consecutive days. 
  2. Europe also closed in the red.
  3. Today the Asian markets are also in red. SGX is suggesting a 56 points
CRUDE AND $
  1. Crude shot up more than a per cent. Now it is at $72.73
  2. $ is at Rs 73
EXPIRY SETUP
  1. The global markets are in the red. 17400may not be crossed in nifty. I will be doing the below strategy for the expiry in huge volumes. I will be deploying all remaining money to this and put a SL for the trades
    1. +1 X 17400ce
    2. -5 X 17450ce
  2. Nifty has highest OI at 17400. Banknifty has highest OI at 37000
  3. Nifty has max pain at 17300 and that of banknifty is at 36700

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