Trade setup for 06th October

 We are now having good local cues and bad global cues. Globally things are not looking good, especially in China. But India is in no mood to follow the global cues. Now the major question is will India follow the globe or will things improve globally. 

Nifty shot up almost 150 points from day's low and banknift shot up more than 400 points from the low.

Yesterday there was some relief to the telecom sector by the govt in their AGR dues and that gave a boost to Reliance, airtel and VI. Reliance shot up and made an alltime high. It is now trading at 2600+.

As expected, markets did bounce at the 20 DMA. But it is still not in the trend which I have drawn. If markets close in green today then it will be back to the trend and may inch higher. 

Day before yesterday the IT was in huge pressure and all the IT stocks fell drastically. I thought the same would replicate here. In the morning all the IT stocks fell but recovered and closed in the green by evening. Yesterday all the IT recovered in the US. Nasdaq was higher. Even the US markets are very volatile.

The scary part now is the crude. It is inching higher after opec+ decided not to increase the production. 

These markets are driven by domestic and retail money. When retail money is pumped then it is really difficult for the institutions to go against it. But the problem is a slight fall in the market will make the retail people to sell aggressively and the increase the intensity of the fall.

Rise in crude is making the oil companies to rally. ONGC is rallying.

The power and coal crisis in China is increasing. We don't know what is happening in China because whatever happens in China stays in China. 

Moody's has given a good rating for India. From my experience, whenever moody gives good rating to India, the markets fall and whenever they give bad rating then the markets rally. Lets see if it will happen now also or not.

PM Modi met the big bull Rakesh Jhunjhunwala and this pic became viral in the net.

Janet yellen says that the US might goto recession if they don't address the debt limit.


  1. I may have to do adjustments if markets continues to rally higher or book profits. I want to see if markets will close in green today. If that is happening then I will close some and add some adjustment trade.
  2. The stock PE which I had sold are all in wonderful profit. Yesterday I closed them and moved them closer to the spot.
  1. The US closed higher wiping most of the loses which they made day before yesetrday.
  2. Europe closed in the green. The major indices gained more than 1.5%
  3. Today the Asian markets are in the red. Japan, hkg are in red. SGX is suggesting a -ve start. SGX cannot be taken seriously. Yesterday it was suggesting -200.
  1. Crude is at $82.5
  2. $ is at Rs 74
  1. FII sold for 200cr and DII bought for 1800+cr
  2. Looks like even FII are confused in this bull market. Before they were in command of the market. Now in this retail-driven market, nobody seems to care what they do. Looks like they are experiencing  a short squeeze