Trade setup for 20th October

 Yesterday was one of the most volatile sessions to trade for especially for intraday traders as markets were everywhere. At open markets opened and shot up +150points, then it fell 200 points from the high. Then again it shot up 200 points and again fell 200 points by the end of the day.

I did tell you sometime back that 18500 and 40k on banknifty are important levels to keep an eye on. Yesterday, banknity touched 40k and fell from there. Now fresh expansion will begin only after 40k is taken out on closing basis.

Nifty managed to close in the red after 7 days of consecutive rallies. Nifty has shot up more than 1000 points in the last 10 days without any major event, news etc which is slightly too much 

The meme stock was IRCTC. It was well in the green in the morning. It was up by more than 5%. Then there was a sudden selling after 3PM and it fell -15%. Now it is in fno ban.

The rocking stocks like tatapower, tatamotor, iex, bhel all fell.

The same kind of movement happened with  IEX as well. Yesterday the same thing happened with Dmart. But Dmart came out with its numbers so that move could be seen. The common thing amount these stocks is that they were added to FNO recently.  Let's see if the same thing happens today or will it stabilize. 

Bitcoin futures ETF makes its debut in the US. It looks like people just want things to gamble. Gambling is there in humans DNA and as long as this is dominant, there will be newer and newer products that will be coming to boost that.

Reliance retail is now on a shopping spree. Recently it bought a stake in the Manish Malhotra brand. Now it is buying a stake in the Ritu Kumar brand. Reliance will be coming with its earnings very soon. So you can expect this to be volatile.

Now all the companies which are coming out with results are falling. TCS fell 6%, infy was flat, hdfcbak fell 1%. Yesterday, hul fell 4% and ACC fell 3%, dmart fell. This is exactly what I expected few quarters back. I just got the timing wrong. The valuations are so high that the earning are not able to come up with the share price. Another thing is that before the results the stock price shoots up and then after the results it collapses. We have Reliance and ICICI bk results in some days and both have rallied a lot now. I am expecting both the fall after the earnings are out. I will be taking short trades with hedges and always be ready for surprises.

The Dow is closing in the green for 4th day with a good earning season. Netflix came out with fantastic numbers.


  1. No fresh trades were taken. Yesterday was a day where you just sit out and watch as markets did punish both longs and shorts.
  2. Today I am planning to take trades in reliance and ICICI bank if they open in the green for their earing. Will be coming out with a video doing that.
  1. US markets have gained for 5th consecutive day now. The earning season seems to be favourable for the US markets. 
  2. Europe was flat.
  3. Today the Asian markets are also flat. SGX is suggesting a +ve start.
  1. Crude is at $84.6
  2. $ is ar Rs
  1. The institutions have decided not to be a part of the bull run as they are selling continuously. Is it a trap for retailers??
  2. Yesterday FII sold for 500+cr and DII sold for more than 2000cr