Trade setup for 18th October



 We will be opening after a long weekend and there are very positive news locally and globally. So we may break 18500 in this month. 

HDFC bank, HCL tech and Dmart came out with numbers and those stocks will be in focus. 

This week is a week full of results. We have ICICI, Reliance, ACC coming out with results this week. So market movement will depend on the earnings. 

The US markets rallied both on Thursday and Friday. Now even the futures are in the green. SGX is suggesting a 100 point gap.

Last week, we closed in the green for all 4 days despite the US market closing in the red for the first 3 days. The retail money is flowing to the market with full force. 

Nifty RSI on the daily chart is above 75 which means that it is time to be cautious because if there is any disappointment in the earnings then the fall also can be brutal. In a bull market, the fall will be sharp. 

Banknifty may goto 40k soon. 

I think this is the first time I am seeing where everything is in green. Markets are in green, crude is in green, gold is in green, other metals are in green, Inflation is in green, Cryptos are in green. We need to see if there will be a fresh expansion from here.

Mumbai did not report any covid case for the first time in the last 2 years which is indeed good news. So the fear of 3rd, 4th is totally out now. Now slowly, schools and offices may open and we will be back to the pre covid levels.

Rain in causing havoc in many states like Kerala. 

China GDP which came out at 4.9% for the 3rd quarter is disappointing. So the Asian market is in slight red.

Elon Musk is now worth Bill gates and Buffet combined.

MY TRADES

  1. Now many of my trades are in danger. I had to do a lot of adjustments for my MindTree trade after it shot up 12% after its results. Today the IT might be in focus as there will be a reaction after HCL tech results.
  2. I will have to do some adjustments to my nifty trades as well in case they go beyond 18500. So today will be a very important day for me.
INTERNATIONAL MARKETS
  1. The US markets are on fire. Dow shot up more than 900 points in last 2 days.
  2. Europe also closed in the green.
  3. Today the Asian markets are in the mild red. Today if Europe opens in green and if the US futeres turn green then even Asian markets may follow that.
CRUDE AND $
  1. Crude is at $85.5
  2. $ is at Rs 75.2
FII AND DII
  1. Till now FII were selling. Now even they have decided that there is no point in waiting and they have started buying.
  2. On Thursday, they bought for 1700+cr and DII sold for 1700+cr

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