Trade setup for 28th December

 Markets are really volatile and confusing. Till last week I thought that markets would collapse and close below 17k for the year-end. But it looks like all the people who were short have been trapped. I would wait for 17200 to be taken out and have a good follow-through. Till then its still a sell on rise market for me.

It looks like we are having a Santa claws rally worldwide and all the global markets are on steroids. Will we be able to maintain the same momentum for the next year also?? 

Now the entire world is considering getting a booster shot as Omicron cases are rising and study says that in the next 2 months the spread is going to be stronger. Many flights are cancelled worldwide due to this and it is a major hit for many airlines as they missed the sales which happen over the Christmas holidays. Yesterday all the US airline stocks were down in the US.

It looks like we will go beyond 20 DMA in nifty and banknifty today. Will that be taken out and will there be follow-through is what you need to see. I will take my chances and take short positions today once we have a gap up. Let's see if that works or not.

Yesterday there was volatility due to the RBL issue. RBL fell and closed by losing almost 20%. It will be interesting to see what will happen today. 

The best part is that FII favourite stocks HDFC twins, Bajaj twins, ICICI RIL are rallying and for now it looks like FII selling may stop and they may become buyers. But many FII are on vacation so we need to check this after 1st week of Jan to get a clear picture.


  1. Most of my trades are in the green and I will be doing some adjustments to increase to profits.
  2. I will be selling nifty futures at open when there is a gap up(as per sgx). Will close it intraday or may add some hedges if I am carrying.
  3.  I will initiate some butterfly's for next month as well with the little margin which I have.
  1. The US markets closed higher. S&p has made another record close. Dow gained more than 300 points.
  2. Europe also closed in the green. 
  3. Today the global sentiments has enabled us to open higher. The question is will that gap up get support?? I don't think so. I feel that there will be selling once there is a gap up.
  1. The selling in relentless. Yesterday they sold for 1000+cr but DII supported and they bought for almost 950+cr.
  2. If you want to see markets go higher then FII should go and buy in the markets. So these minor rallies might be sold into and won't assume that the bottom has been formed.
  1. Crude is at $78.3
  2. $ is at Rs 75