Trade setup for 22nd December

 Whatever was lost the day before yesterday was almost recovered yesterday but markets fell in the second half. Nifty fell 600 points the day before yesterday and recovered 200 points. Yesterday it shot up 300 points and then fell 150 points. That's how volatile the markets have been in recent times. 

Still, the markets are weak. You can see that in banknifty where the FII selling is happening constantly. Banknifty did not recover at all yesterday. It shot up 500+points and then fell in the second half to close on a flat zone.

The FII selling has to stop if the markets have to recover. You cannot ignore the FII and expect retailers to take the markets higher.

The US markets also recovered yesterday after Biden told that there wont be any lockdown despite increasing cases. This gave some relief to the economy to go higher.

As I told you, close above 17k and follow-through will change the sentiment. Till then it's still a sell on rise market only. Dont get fooled by one day rise.

In China, the govt has asked people to stay home due to covid cases rise and they have cut all public transport and other things.

The new companies which got listed are now falling. Is this the end of IPO frenzy market?? Nykaa below its listing price.

MY TRADES

1. I took some trades in the weekly expiry with the remaining margin. I am not expecting markets to be as volatile it was in the last 2 days.
2. I did adjustments to my butterfly trade to increase the profit. Let's see if that works in my favour or not?
3. 17k is a strong resistance so I sold 17100ce aggressively.
4. I will invest in some stocks if markets go below 16500 again.

INTERNATIONAL MARKET

1. Dow shot up 500+ and nasdaq gained 350 points. Lets see if the US markets can continue this trend.
2. Europe also closed in the green and gained more than 1%
3. Today the Asian markets are in the green. SGX is suggesting a +ve start. Lets see if we can maintain that. I personally don't think so. FII will sell when they get a better rates.

FII AND DII

1. Even when markets were higher, FII have sold. They sold for 1200cr and DII bought for 1400cr. This will definitely have an impact on the sentiment. I expected this.