Trade setup for 14th Jan

 Happy makara sankranti for all the readers. Coming to markets, Indian markets have rallied for 5 consecutive days. For yesterday's expiry, 18200 was a very strong resistance. In the last half hour, nifty rallied and closed above 18200. It was a pure expiry play to trap all call writers.

Yesterday it was metals and pharma day. Banks and IT took a break. Infy and TCS were up by just 1% and wipro fell almost 6%. 

Yesterday mindtree came out with numbers and today hcl will come out with numbers. Over the weekend we have HDFC bank coming out with numbers. Today you have some of the major banks in the US coming out with numbers. So that might trigger the sentiment(either positive or negative) here in India as well.

The problem is that in this month, banknifty rally was led by HDFC bank and in last 2 days 1/3 of the rally is gone. So its confusing as to what might happen to HDFC bank on Monday. 

Paytm is not getting any support. Its just falling freely. I am happy that I did not apply for ipo. But I feel bad for many who got allotted as there is a huge wealth destruction. 

Yesterday the tech stocks were beaten in the US. Nasdaq closed in deep red.

Day before yesterday US inflation data came and US markets did not react much. Was that a trap to the bulls? Sometime, there will be a late reaction for the news.

Today you have the Chinese trade data which is coming out. So all Asian markets are weak ahead of that. All the country's trade data which came out till now were bad as deficits were higher. So the same is expected from China as well.


  1. Yesterday I had sold huge quantity in 18200ce. At 3PM when there was a spike, I was quick in adjustment and made some quick money. 
  2. This week I am bearish to slightly bullish as we have rallied a lot in the last 2 weeks. So I am executing the below trades
    1. +1X 18200ce
    2. -5 X 18500ce
  3. I am planning to do a trade in HDFC bank today after it opens. Will share that in my social media channels.
  1. The US markets closed in the red. The dow opened in the green but fell by the end of the day. Nasdaq lost more than 2% in yesterday's trade as the fear of inflation triggered the selling. 
  2. Europe was mixed.
  3. Today the Asian markets are in the red. Japan is down by more than 2%.
  4. SGX is suggesting a -ve start. We may close in red today after a 5 day rally.
  1. FII are selling and for the Jan they have become sellers. Yesterday they sold for more than 1300cr.
  2. DII bought for 1065cr
  1. Crude at $85 is dangerous for India. Even we may face the inflation heat with high crude prices.
  2. $ is at Rs 74