Trade setup for 8th Nov

 Sorry for being away for a long time. This is the longest time I was away from blogging, video making etc as I was busy with my mother's hospitalization. Now she is fit and back home. 

Coming to the markets, it is currently mixed and difficult to guess the direction of the market. FII's are selling and markets are going higher. A few months back, the setup was the same and then FII turned buyers and took the market higher. Will the same thing repeat or will retail follow the FII and take markets lower?

We had an excellent Muhrat trade on Thursday and nifty shot up.

The biggest Diwali gift which govt gave to the retailers is that they reduced the fuel prices. Petrol and Diesel fell by more than 10rs depending on the state as many states also reduced the prices. 

In nifty, 18300 is strong resistance and if that is broken, I will consider that the markets have turned and the upside rally would continue. Till then I will use every rise to sell into the market. Banknifty is also weak. 

The festive season has come to an end and it looks like the consumer buying was huge. The auto sales dropped in the last 30 days compared to last year. Some were due to the chip shortage. 

Today Paytm IPO is getting opened. It is one of the largest and hyped IPOs. I am planning to apply for this. Let's see how that goes after listing.

Elon Musk is planning to sell a 10% stake in Tesla as per his tweet. So it will be interesting to see how the US markets will react today. He justified that it is due to the tax issue. Does he feel that his companies are overvalued now?

The US markets are at their record highs and is rallying continuously for the last 6 days. I don't know if Diwali was in US or India. Nasdaq is up for 10 sessions.

The RSI of the Dow and Nasdaq are above 70. So the risk-reward may not be in the favour of the bulls. If there is any sharp correction in the US markets then obviously the world market will have an impact.

The US jobs data was good and the fed told that they will begin the tapering and indicated that the rate hike may not happen soon. So it is a taper without a tantrum. That's why the US markets are going higher. 


  1. I am executing the below trades
    1. +1 X 18300ce
    2. -3 X 18600ce
    3. -2 X 18700ce
  2. I sold my entire portfolio sometime back. Now I will begin investing in quality stocks in phases again. I bought 100 shares in icici bank for long term investment on muhrat day.
  1. The US markets are roaring and making new highs.
  2. Today the Asian markets are higher and SGX is suggesting a gap up. SGX is above 18k again.
  3. Europe is also going higher and higher.
  1. FII are continuously selling. Even on muhrat day they sold for 300+cr and DII bought for only 38cr.
  1. Crude is at $83.75
  2. $ is at Rs 74.75