Trade setup for 9th December



 Now markets are again in the grip of the bulls. The double bottom at 17k and then breaking the major resistance of 17300 with a good follow-through yesterday did show that the bulls are going to continue.

Yesterday there was another fantastic rally. I expected the markets to go below 16500 this month, but it looks like I was wrong and we may go higher from here. I don't think 17k will be taken out this month. So one can easily sell 17000 and below PE strikes.

Yesterday, Bipin Rawat's helicopter met with an accident and everyone in that died. He was a man with an iron fist and is a very very big loss for India. 

Yesterday, we had the RBI policy and it was as expected. The markets probably had expected that as they were charged before the policy itself and when the policy proved that, markets moved even higher.

In the last 2 days, market sentiment has changed totally and now people are again talking of breaking 18k.

Now all the new-gen IPO stocks which got listed have again become the market favourite. Yesterday, the Nykaa locking period was over and still, it continues its rally. Devyani, Paytm, Vodafone all closed in the green.

For now, it looks like the correction phase is over and the rally may continue on the upside. Even the FII selling has come down yesterday. Very soon they will be buyers and then the markets will continue its uprally. Now it has become a buy on dip market again.

Moderna and Pfizer say that a 3rd dose will make all safe against omicron. Looks like the pharma companies are just taking advantage of this virus and they want to juice out as much as possible.

FII have sold for around 500+ cr and DII have bought for 1700+cr. So it looks like the markets are supported by retailers and Dii.

There is a great support from the international markets as well. Today the SGX is suggesting a 100 point gap up. 

MY TRADES

  1. Yesterday when markets shot up, my butterfly strategy has been in good profit and now I have to do adjustments to increase the profit. I have sold 17000pe in the monthly expiry aggressively as a counter trade. 
  2. Today it looks like there will be a huge gap up. I will be executing the below trade
    1. -1 X 17600ce
    2. +1 X 17900ce
  3. I will be investing another 10% of my capital in tata mtors, reddy lab, nykaa and safire food
INTERNATIONAL MARKETS

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