Trade setup for 31st Jan 2022

 Today is the last trading day of the month and it looks like we may close the monthly candle in the red. Today markets will be volatile as tomo is the B-day. 

Markets will be volatile and doing intraday trades will be difficult. On Friday, markets opened in the green and then fell drastically in the second half. The FII selling is not at all cooling. When we feel that FII selling is over, they sell more. 

Oil is rising due to geopolitical issues. Again tension in Russia and Ukraine have increased and the west is planning to impose sanctions on Russia. Crude is at 91. But surprisingly gold is falling which is what is confusing. Usually, people invest in these metals when there is uncertainty. But this time, it looks like that is not happening.

Phonepe has applied for a mutual fund licence, Zomato is applying for an NBFC licence. I don't know what are they planning to do. I prefer not to invest in these companies. I would have bought long term puts if these were in fno.

The covid cases are falling and the entire world is opening up. Many cities in India have eased the restrictions. The reason why markets rallied till now was with the expectation of the economy returning to normal after covid. Now it's almost normal, don't expect many rallies from here. The markets would have factored in that.

Indian IT index has fallen drastically. I would sell some deep OTM puts and take delivery if they fall further. My favourites are TCS and TechM.

Rafael Nadal won the Australian open and it was a splendid comeback after his leg injury.


  1. I did a video as to the trades which I will be taking for the budget. I thought of doing this on Friday when markets fell but I thought of doing this today as markets fell in the second half on Friday. Today I will be taking that trade probably in the second half as there will be a gap up today.
  1. The US markets are bouncing from their support level. On Friday there was a good bounce in the US.
  2. Europe however closed in the red.
  3. Today many Asian markets are on holiday. SGX is suggesting a 200 point gap. I think now 200 points intraday movement has become normal.
  1. Crude is at $91.33
  2. $ is at Rs 75
  1. FII sold for another 5k cr on Friday and DII bought for only 3kcr