Trade setup for 13th Jan

 It looks like markets have forgotten to go in the red. Every day the markets are making high and nifty is moving at least 100 points higher. Banknifty is now up for 10 consecutive days. Today the movement will be decided by IT. 

Infy ADR is slightly up and wipro ADR is down by 8%. Let's see what will happen to TCS today. I have taken a trade in TCS where I will be benefitted if it falls. Yesterday's fall has already given me more than 2% profit for the capital deployed. I have taken a very small bet of 20 thousand only. :)

The major news was that the CPI inflation of the US came out and it was bad. December inflation was at 7%. So now it is for sure that fed will take some measures. But surprisingly the US markets did not panic as it was expected. Crude oil at $80+ is one of the main reasons for that. 

Today real estate is in focus as Maharashtra has waived property tax on houses up to 500sqft. So the Mumbai based affordable home players will be in focus.

Today you have mindtree and tomo HCL coming out with numbers. 

Nifty and banknifty RSI is now close to 70 on the daily charts. Even after rallying for so long it is still below 70 shows that it was oversold till now. From now its better to exit some positions as there might be some profit booking.

The trend is clear. You just wait for the dip and buy them. There will be a dip which may not be bought but till then there will be many dips which will be bought. You will be making profits till you are in the trend and a small loss when the trend reverses.

Paytm is now at half of its issue price. I will buy some when it is below 1000. Pre IPO was sold at 2800. IPO issue was around 2250 and today it is at almost 1100.


  1. For today's expiry I had sold 18250, 300ce. It looks like I need to run for cover as SGX is suggesting a gap.
  2. I will close TCS trade if it opens in red and I may have to do an adjustment if it opens in the green.
  3. My butterfly trade which I took is bleeding. I am doing a lot of firefighting. I may have to close in loss if this uprally continues. I am planning to keep it till Monday. If the markets don't show signs of cooling then I will close them in minor loss.
  1. The US markets did not react much to the inflation data. It was almost flat for the day.
  2. Europe closed in the green
  3. Today the Asina markets are in the red. SGX is suggesting a 100 point gap. Sometimes SGX is misleading. Lets see if it is correct today.
  1. Interestingly FII have sold yesterday for 1000cr and DII have bought for 1332cr
  1. I am planing to do the below trade for today
    1. -1 X 18400ce
    2. +1 X 18500ce