Trade setup for 21st April

 Again markets have recovered from the day before yesterday's fall. The brutal fall which happened the day before yesterday was more likely due to some technical glitch or fat finger error because markets were normal in the world.

Yesterday the recovery showed that. So people who assumed that 200,50 DMA is gone and markets would go down lower are trapped. That's why I always wait for follow-through. If markets had closed in red yesterday then I would go short aggressively. 

I did go short daybefore yesterday but the volumes are low and can be easily managed. I still have a lot of room and can be managed easily.

Now if 200 and 50 DMA is taken out again then the markets are definitely weak. If market recovery has to happen then banks will play an important role and short-covering will happen here only.

Again it was RIL that led yesterday's rally. Now all of a sudden, IT has started to recover. We have hcl results that might change the direction of hcl. I am mildly bullish on HCL and I have shared the trades which I have taken on in yesterday's blog. Banks are still weak. Yesterday it was moving from green to red and vice versa and finally managed to close in the green.

In the US, the markets are stable. Dow was cool. Nothing big happening there. Netflix came out with numbers and subscribers fell for the first time in a decade. The stock price fell 35%. Last quarter when it announced numbers, it fell 19% and in the next 3 months, it recovered that. Will this 35% fall recover as well? Obviously, because of this, Nasdaq closed in the red.

Infy is in news because of its non-compete clause where employees cannot quit and go to competitor companies for 6 months. 

Tesla's numbers were wonderful. Now Tesla will be hiking the prices.

Today is expiry and 17200 will be strong resistance. IF that is taken out then the market may go close to 17300.


  1. I closed some of the trades which were in good profit and taken some short strange for today. 
  2. I have taken the below trades on may expiry
    1. +1 X 17200ce
    2. -5X 18000ce
  1. Crude is at $108
  2. $ is at Rs 76.5
  1. FII continue to sell. They sold for 3000 odd cr