Trade setup for 07th December

 Again we are below 17k. In just 2 days we have lost around 600 points. Now the Omicron cases are rising and that fear is causing uncertainty is what all the analysts are telling. Is it so??

Yesterday other than Vodafone everything was down. Reliance, ICICI, HDFC, tata motors all led to the fall of the markets. Today's price action is very important. If there is a rebound like SGX is suggesting, we need to see if there is follow-through. Then we can say that there is a double bottom formation and a convincing breakout of 17300 can take the markets higher. 

Tomorrow is RBI policy. If any good commentary regarding inflation then markets can go higher. We all know that there will not be any change in the rates.

ATM cash withdrawal will be expensive. I don't think there will be any physical cash in the next 25 years. I don't remember going to ATMs for a long time now. Everything is dealt with digitally.

Putin visited India and there have been some deals with Russia in the defence space. The US is getting angry over this and the way Russia is being treated by many countries. They are now planning to put some sanctions if Russia attacks Ukraine. Let's see how this escalates or dies.

Everyone knows that oil is going to end very soon. This has now made the oil-rich countries think about other sources of revenue. 

The US markets did recover yesterday. Dow gained 600+points and Nasdaq which was very weak for sometime now also recovered more than 100points.

The major problem for the markets now is that the FII are selling. Their selling is intensifying every day. Today there seems to be a bounce. Dont get carried away for the recovery. WE have fallen 500+ in 2 days and recovering 100 does not signify anything. See for FII action and see if there is a decent follow-through tomorrow.


  1. I am fully deployed. I just had some deep OTM puts yesterday for the weekly expiry with the remaining margin which I had.
  2. When markets fall, my trades go to loss as there will be vix increase and the premiums of options which I have sold increases. When the market recovers, it recovers and goes to positive territory. 
  3. I have started trading in crypto with small money. I am planning to move a good chunk of my money to crypto as I see a good potential there.
  4. Today I will close some profit-making trades and execute the below trade
    1. + 1 X 17000pe
    2. -3 X 16800pe
  1. The US markets closed in the green. They gained more than a per cent.
  2. Even Europe closed in the green and gained more than a per cent.
  3. Today the Asian markets are well in the green. SGX is suggesting a 100 point gp up
  1. Crude is now inching higher. Now it is trading at $73
  2. $ is at Rs 74
  1. Again the selling continues. FII sold for more than 3300+cr and DII bought for 1700+cr