Trade setup for 02nd Feb

 Yesterday was another volatile day. Nifty gapped up 200+ points and went to red and closed around gaining 200+ points. And this was expected as it was not a normal day. 

This budget heat will be there for this week. So from next week, you can expect markets to behave and come to reality. 

The budget did not have much to offer for the middle class. People expected some tax relief for salaried people but that did not come. 

Cryptos are somewhat legal in India now and you will be taxed 30% on the profit. You cannot have any deductions or carry losses to next year. Now RBI is coming out with its own digital currency. Let's see what they have to offer.

Alphabet came out with numbers in the US and it was good. The best part is they are splitting the stock for 20:1

The next big event is the RBI policy which is there next week. I think now the markets have factored the rate increase. So that might not be surprising if FED or RBI does it. 

Today, Jubilant food and Zee are coming out with numbers. 

I expected tobacco products to be taxed higher but that did not happen. In fact, I had taken a bearish trade in ITC and now that is in a slight loss. They have their earing in some days. So I will do an adjustment after that. Till the budget got over, ITC was almost flat and after the budget, it shot up 3%. 

The best part yesterday was that the FII selling almost came to a halt. Let's see if they will continue that today as well or not. 


  1. Yesterday was a beautiful day for all the options traders as there was a IV crash after the budget. Deep OTM calls and puts premium fell drastically after the budget. The bullish trade which I had suggested in youtube video has worked perfectly and its in good profit. Today SGX is suggesting another 100 point gap and the profit will be excellent.
  2. The ITC trade which was a counter trade to the nifty is in some loss but that's fine as the nifty profit is excellent and we still have room to do adjustment here.
  3. I had executed many other strategies and all have worked in my favour.
  1. Crude is below $90
  2. $ is t Rs 74.5
  1. The US markets are rallying and we are just following them.
  2. Russia is threatening to attack but the international pressure is keeping them to stay low.
  3. Many Asian markets are on holiday and the markets which are open are in the green and SGX is suggesting a 100 point gap.
  1. Yesterday FII did not trade at all.
  2. DII were buyers which took markets higher.