Trade setup for 21st October


Finally, markets are showing some weakness. But this month alone it has shot up more than 1000 points and in the last 2 days it has given back 400 points. It's still not a confirmation that the markets will collapse. But a healthy correction of 10% is needed for the next leg of expansion to happen. Markets were rallying non-stop from 15k.

IRCTC continued its fall and it fell more than 17% yesterday. In 2 days it has lost 30%. It touched 1lak cr market cap and then lost 30k market cap. There is no news or event associated with this fall. It had rallied a lot and now it's getting hammered. That's how some stock behaves. It's better to stay away from these high beta stocks especially if you are trading in FNO. They have the capacity to wipe your entire capital.

Now all the rocking stocks like Dmart, tatapower, iex are all coming under pressure.

As expected this quarter the companies are trading in red after the results. Yesterday, jubilant food works lost 8% after the results. Today you have IEX, Asian paints, jsw steel come out with numbers. Let's see how they react.

Yesterday the banknifty was flat. It was midcap which started falling drastically. The portfolios would be bleeding if midcaps fall. HDFC bk was it in red but sbi supported the market and ICICI bk was in the green for the first half and turned red in the second half. They will come out with their numbers over this weekend. 

Bitcoin has hit an all-time high after the ETF futures began trading in the US. 

The dow closed at a record high. Now Dow is rallying continuously for 5 trading sessions. The US futures are in the red for now.

Evergrand shares again began trading in China and it has fallen 10%. The property sector in China is having a huge problem and the question now is whether this will escalate to other companies and other countries or not.

The Covid cases remain high in Singapore and UK. Singapore has again put some restrictions.


  1. I will be doing a live earning trade in the ICICI bank today. 
  2. There is high open interest in 18500ce and 40k ce of bnanknifty. I have taken the below trades for today expiry
    1. -1 X 18550ce
    2. -1 X 18600ce
    3. +2 X 18700ce
  3. In banknifty I have taken the below trades
    1. -1 X 40100ce
    2. +1 X 40700ce
  1. The US markets closed higher. Dow gained 150 points and nasdaq was flat as it had rallied a lot yesterday.
  2. Europe closed in the green
  3. Today the Asian markets are in the mixed. SGX is suggesting a flat to positive start. 
  1. FII sold for 1800+cr and DII old for 1600+cr
  1. $ is at Rs 74.8
  2. Crude is at $ 84
  1. Nifty may move within 18400 to 18250. One can create spreads above and below that(iron condor)
  2. Banknifty may range from 40000 to 39000
  3. Keep an eye on stocks like RIL, ICICI and tata motor.