Trade setup for 12th Oct

 Finally, 18k is here. It looks like markets are in no mood to correct. It has been a fantastic rally after covid. It took almost 45 days for the markets to cover 1000 points. What next? Will it go to 20k?

Yesterday morning the markets shot up 100 points without the participation of reliance and IT. TCS results were not taken positively by the street and it fell 6%. The entire IT index was in red. Tomorrow is an IT heavy day as we have Wipro, Infy, Mindtree coming out with results. So it will be interesting to see if these companies will take IT higher.

Nifty went up to 18050 and closed below 18k. It was obvious, as there will be some profit booking when 18k was hit. I will initiate long positions only if 18k is taken out on a closing basis.

The entire rally is coming from the retail money. Retail participation is getting ferocious day by day. Is this the new way of the stock market or will the retailers be punished the way they were punished in the past? 

Now all consumer spending sectors are coming back in a strong way. Aviation, travel, clothing, real estate are all booming.

Yesterday it was the banks that propelled the markets. Banknifty shot up 600points and then there was profit booking in the second half.

The power and coal crisis is growing day by day. Today home minister and PMO is talking to the coal ministry and power ministry to inspect the situation.

Crude is also rising. This is a slightly scary and negative factor for the markets. Inflation will rise if this continues. Is the real economy doing so well? Sometimes I feel that I know something which no one in this world knows 


  1. I had sold 3900ce/pe in TCS. Yesterday there was a gap down in that and I averaged by selling 3500pe/ce. For now, it looks good. Tomorrow will be the day where there might be huge movement due to 3 IT major results. In the worst case, I am willing to take delivery of TCS for long term investment as I would have negotiated 
  2. In my put ratio spread which I had implemented. I added another adjustment leg where I sold 18500ce when 18k was broken yesterday. As I told, adjustment is done to increase profit as well.
  3. I am bullish on the Aviation sector. I will be buying 50k with SpiceJet and 5lk worth of indigo today. I will hedge that in options.

  1. The US markets closed in the red
  2. Europe was mixed
  3. Today the asian markets are in red. sgx is 100points down
  1. yesterday both of them sold.
  2. FII sold for 1300+cr and DII sold for 300+cr
  1. Crude is at $83. Yesterday it went up to 85.
  2. $ is at Rs 74