Trade setup for 25th Feb

 Yesterday there was a bloodbath in the markets. I did not expect Russia to start the fight when there was NATO by their side. It looks like, NATO did not retaliate and was just the moral support that was given. No NATO nations have sent their boys on the ground.

I thought that for this month(expiry), 200 DMA would not be taken out. Markets proved me totally wrong. We fell way below 200 DMA. I was sitting in a wonderful profit till the day before yesterday and yesterday all the profit went and I had to close in a loss for the month. It was just an unlucky month. 

SEBI has now told that brokers cannot fund the extra margin when you use something as collateral. Till now, the rule was that for trading, 50% of the collateral can be used as margin and the other 50% should be given in cash component. Brokers used to fund the other 50%. From May 2nd, brokers cannot do that. This is another hit for traders which means that you cannot use only your stocks, MF for pledging and trading. You have to bring 50% cash as well for trading. Seeing all the things which SEBI has done so far and the volatility in the market, frankly, now it is no more lucrative biz. 

The US markets were for a surprise yesterday. Dow and Nasdaq fell drastically on opening. Dow fell more than 600 at open and recovered entirely. Nasdaq led the rally. It shot up more than 3%.

Has the Russia-Ukaraine issue been priced in??

Today the SGX is suggesting a huge gap up. Will they be sold or will the rally continue? We need to wait and watch. This month we have UP elections, FED outcome. Let's see.

US and UK have imposed more sanctions on the Russian banks, oil companies etc. I am pretty sure that Russia would be ready for that. The moral that other nations have to learn is that you are on your own. No nation including the US will come for help when you are in danger. They all just talk. All the nations who supported Ukaraine did not do anything when things went out of control. The US interferes when small countries fight. When a big country like Russia is involved, it was just words and sanctions.


  1. I did not do any trades yesterday after closing all trades as it was volatile and I preferred to stay away from the markets.
  2. I am not planing to take any trades today also. Will take a break for the weekend and will begin from Monday as last 2 months has not been good for me.
  1. Now all are up. Is the war over?
  2. SGX is up 300 points.
  1. It has taken out $100 and went up to $106. Then it fell to $95. Now it is again trading at $101.
  2. This is one which is even more volatile.
  3. $ is at Rs 75+ which is also bad for India.
  1. FII sold for 6500 odd cr and DII bought for 7500 odd cr. Even with a difference of +1000cr we fell drastically.