Trade setup for 28th Feb



 Now Covid is no more in the picture. Now there is a Polio vaccination is going on. If you have kids then make sure that they are vaccinated against polio.

The only news which is making headlines is the Russia-Ukaraine war. Now even the Hijab issue seems to be over. It looks like the case will go on for years now in the courts. Now it looks like it was an election gimmick. 

Now new sanctions are being put on Russian banks and Putin. It looks like Putin does not care about these.

Over the weekend, SGX shot up to 300+ points. Traders who were long on Friday made a wonderful profit on papers. Because now it is almost flat now. 

2 days back, India maintained a neutral stance in the Russia-Ukaraine issue. Because we would be in danger if we take any stance. I am not sure if this is an intelligent move or a coward move as we are dependent on both countries. It's high time we become self-reliant, otherwise, we will just be puppets in the hands of these developed nations.

The good news is that Russia has agreed to talk to Ukaraine in Belarus. But Russia has raised the nuclear alert status. 

Now the Dow futures are in the red. The Asian markets are also in the red.

MY TRADES

  1. Guessing the direction of the market is very difficult in these times. It's better to keep the volumes low for March as every day the views are changing. I have decided to keep the volumes ultra-low till this war issue is done. Till then I will be trying out intraday trades.
  2. Today I will take the option of buying trades for the march. It's called ATM long strangle. 
    1. +1 X 16700pe
    2. +1 X 16700ce
  3. I will be selling deep OTM put for good quality stocks and will take delivery if it comes to that level.
INTERNATIONAL MARKETS
  1. Dow shot up 800+ points on Friday as it looked like the Russia issue seems to have ended. But today fresh things emerged and Dow futures is now down by 400+ points. Nasdaq also shot more than 1.5% on Friday.
  2. Europe also gained more than 2-3% on Friday.
  3. Today the Asian markets are down by more than 1%.
  4. SGX is suggesting a flat start now.
CRUDE AND $
  1. On Friday, even crude came below $100 and things looked promising. Today the crude is again back to $100+. It has shot up more than 5%.
  2. $ is now above $75. Not sure if the FII are selling and taking back money out of India. If that is the case then the recovery in the markets will happen soon. If money is there in India then there can be a hope that they will invest soon.
FII AND DII
  1. FII sold for 4000+cr but DII bought for 4000+cr.
  2. Even when things looked good on Friday, they sold. So today its obvious that they will sell further.



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