Trade setup for 20th December



 December is proving to be a bad month now. Usually, November is a good month, but this year November proved to be a bad month. So you can imagine the damage that can happen in December. This is the 3rd time this month we are going below 17k. Today you can also see the follow-through. This is clearly a sell on rise market, so don't think of buying anytime soon.

On Friday, it was only IT that supported the market. If it was not for IT then we would have fallen even more. This was an opportunity to short the IT. The markets are down. The US IT index is falling. Ultimately, the Indian IT should also correct. IT alone can't keep going up with the markets falling and the global markets falling.

Now people are taking omicron and inflation slightly seriously. Let's see if markets give a decent correction in the coming months. 

Now Omicron is rising at an alarming rate in Europe and many countries like Netherland is locked down.

Robinhood has fallen from $70 to $19 in 5 months. The new age internet companies are falling and for now, it looks like it was a trap for all retailers. The promoters made use of the crazy bull market for their benefit. Now after the anchor lock-in period of many companies, you can expect huge wealth destruction in the new IPO's. This is not just in India. It is a similar story globally.

Omicron disrupts the supply chain. Supply chain disruption causes inflation. Inflation causes central banks to hike rates which are bad for the market. This is the story which the world is following now and the markets are correcting worldwide. 

Now a lot of movies are coming out. Spiderman which came did see a good performance in the theatres. This sector may again be impacted if lockdowns are imposed again.

MY TRADES

  1. As I told, close below 17k and follow-through on the down side is a clear indication of short. So today is the time. Any intraday rise will be used for selling. I will execute the below trade in the monthly expiry
    1. +1 X 17200
    2. -2 X 17300ce
    3. -2 X 17400ce
    4. -2 X 1750ce
  2. Its time to do adjustment in the butterfly strategies which I have taken. Not that it is in danger. adjustments will be done to add more to the profits.
INTERNATIONAL MARKET
  1. Last week Nasdaq fell 3%
  2. The US futures are down by 300 points. 
  3. Today the Asian markets are down by 1%
  4. SGX is suggesting a 150 point gap down
FII AND DII
  1. In the peak covid months(jan to april 2020) FII sold for 90kcr
  2. In last 2,5 months FII have sold for 90k cr. Will the become buyers now.?


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