Trade setup for 12th Jan



 The markets are very very strong. Every dip is being bought. The mutual fund money is flowing like water. Not sure where this money was all these years. It looks like after corona, all this money has come out and directed to the stock market. 

Yesterday even 18k has been taken out.  The techs, banks and Reliance are leading the rally.

Banknifty has closed in the green for 9 consecutive days. I don't remember when was the last time I saw this. I am pretty sure that all the call writers are swept out of the market and they would have run for cover. I have sold 40000ce for the monthly expiry. Let's see if that is safe or not.

Yesterday's talk of the town was Vodafone-idea. Now it is a govt company as govt is the biggest shareholder. The board has decided to covert the dues to equity for the govt. The street did not like it and it fell almost 20%. Now we need to see how govt will play with mtnl, bsnl and voda.

Paytm is now at 50% discount from its issue price. I am planning to buy that if it comes below 1000.

From today we have the earnings which will begin. IT will be leading with this. Today you have TCS, Infy and Wipro coming out with numbers. Last quarter infy was flat, TCS was down 6% and Wipro was up by 7% after the results.

Further movement in the market will depend on the outcome of the earnings. 

Yesterday Powell told that inflation risks are higher and Fed will hike rates if needed. So there was no specific as to how many times the will Fed do it in 2022 or what is the impact on the economy. So markets did not react much to what Powell told.

MY TRADES

  1. Today is TCS results so I took this trade
    1. +2 X 3800pe
    2. -1 X 3900pe
  2. My butterfly trade is in bad shape today. I am doing a lot of fire fighting trade. I have put a portfolio stop loss. Will close if things don't work. 
INTERNATIONAL MARKETS
  1. The US markets closed in the green. There was no much impact of the Powell statement. Nasdaq which was falling is now in green for 2 days. S&P which was falling is now up.
  2. Europe closed in the green
  3. Today the Asian markets are very strong. SGX is suggesting a 150 point gap up
CRUDE AND $
  1. Crude is t $84
  2. $ is at $73.5
FII AND DII
  1. FII bought for 111cr and DII bought for 375cr

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