Trade setup for 28th October



 The name of the new game is volatility. It's better you get used to it especially if you are a trader. Till now it was a buy on dip rally. I think now the sell on rally will begin . Every day you can see that there will be a nice rally in the morning and then there is a selloff. Yesterday the same thing happened. Again most of the companies which came out with results fell drastically. Bajfin, Axis bank all fell after results.

Bajaj auto came out with numbers and has beaten estimates. Titan numbers were slightly worse. They will be in focus today.

Look at banknifty. On ICICI bank result, it shot up 1200+ points as ICICI bank shot 10%. Then in the last 2 days, it has given up more than half of what it has gained. I had to close some of my positions in banknifty in a loss as ICICI bank move came out of the syllabus for me.

Now we have new companies coming out with IPO. Nykaa, Paytm, policy bazaar are all coming out with IPO's. This is the startup company that is showing profit in its books. All previous companies like zomato were at loss.
 I am not applying for any IPO now as market sentiment is weak and I won't be surprised even if they open lower. 

Today is the monthly expiry and things are going to be volatile. So if you are trading today then make sure to cut with a strict stop loss.

Many companies like ford, mc donald came out with good numbers in the US.

The US markets are also showing signs of weakness. 

Today you have the Japan monetary policy. Let's see if Japan will start hiking rates. South Korea did raise the interest rates last time. But no other countries followed that. 

MY TRADES

  1. It's just sitting and watching now as all trades are taken and waiting for a decent expiry. 
  2. I have taken the below trade for today's expiry
    1. -1 X 18200ce
    2. -1 X 18200pe
INTERNATIONAL MARKETS
  1. Now there is some weakness in the global markets as well.
  2. Dow was flat. The US markets are falling from their all-time highs.
  3. Europe closed in the red.
  4. Today the Asian markets are in the red. SGX is suggesting a flat opening.
FII AND DII
  1. Again FII have sold for 1900+cr and DII bought for only 400+cr.
  2. Now FII are selling. We need to wait and see if they start buying during Diwali when sentiments change. If this selling continues then one can think of shorting. Wait for 18k and 20dma to be broken on the lower side.
CRUDE AND $
  1. Crude is falling and is now at $82
  2. $ is at Rs 75
EXPIRY SETUP
  1. Nifty may range from 18k to 18400
  2. Banknifty may range within + or - 500 points. 
  3. Today is monthly expiry and if markets open in a flat note then there will be volatility in the second half.


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