Trade setup for 23rd December

The entire Monday's fall has been recovered in the nifty but banknifty has not yet recovered. What does this signify??

From Monday's low, nifty has rallied 500 points. Today SGX is suggesting a 100 point gap and that will take the nifty rally to 600 points. I think this is the first time I am seeing where nifty fell 600 points and recovered the entire thing in the next 3 days. Even in 2020 when VIX was at 75+, I did not see this kind of a movement. The best part is, markets have many things to teach us every day. You are just a learner in this market and never an expert. 

Yesterday you can see that the institution favorite stocks began to rally. Is this the low and will we start going higher from now? As I told, wait for 17k to be taken out with a follow through. You could see that ICICI, baj twins, hdfc twins, RIL all started to move.

Today's movement will give some direction. We need to see if the gap will be sustained or will there be selling at higher levels. I am expecting that there will be selling at higher levels and all my expiry trades will be on the short side.

The FII selling does continue. For now, 17k is a very strong resistance. Any buying should be done only when there is a close above 17k with strong follow-through. Till then it is still a sell on the rally market.

Finally, zee and sony to be merged and that will be the biggest media house in the country. 

Pfizer has come out with a covid pill which will be the treatment that will be given to covid patients. FDA has also approved that. Probably that is the news that is driving the markets.

Now markets are at a strong technical point because it has fallen 10% from their high. 5% is considered as pullback and 10% is considered as a correction. Let's see if markets take it higher from here?

This is the chart of the nifty and I would consider that this would continue until this channel is broken out.

The US markets continue their rally for the 2nd consecutive day and it looks like Biden telling that there won't be any lockdown has given the boost to the market.

Elon Musk has sold his shares to pay the taxes.

MY TRADES

1. Today I will be executing the below trade at start. I will be deploying the entire margin which I have in this trade and put a strict SL order.
1. +1 X 17000ce
2. -3 X 17100ce
2. I am expecting the markets to sell off when there is a gap up. Let's see.
3. I am planning to go on a small vacation this week so I will close some of the trades which I have taken in the monthly expiry. 

INTERNATIONAL MARKETS

1. Now it looks like the entire world markets have become positive. Just few days back, markets fell like the world would come to an end.
2. The US markets rallied for 2 days now. Dow gained 250+ points and the techs have started their rally again. Nasdaq gained around 180 points.
3. Europe closed in the green and today the Asian markets are also in the green.
4. SGX is suggesting a +ve start. Its up by 100 points.

CRUDE AND $

1. $ us at Rs 75.55
2. Crude is at $75

FII AND DII

1. Many FII are on holidays so its difficult to say that they are not selling. Yesterday even when we were up by 200 points, they have sold for almost 800+cr.