Trade setup for 4th April



 Now markets are in the hands of strong bulls. The FII data is showing that. Now they are buying aggressively. I would still wait for this week's data to make sure that they are really buying, because the last week of the financial year may not be the real picture.

Now inflation is a new challenge for the entire world. The crude prices are falling but it is still above $100. In India, you can see that the petrol prices are being increased gradually by 80ps every day. Its already increased by 8rs already. Slowly all our commodities will also increase.  

The US has decided to release 1 million barrels every day from its reserves and it has asked other countries also to do that. Let's see if the oil price falls more.

Sri Lanka is in a serious economic crisis. The common man there is suffering badly as there are no oil, food, or essential commodities. Many are fleeing to other countries for seeking refuge. All the ministers have resigned and now there is no leadership in the country.

There is chaos even in the Pakistan parliament. Now Imran Khan is no more the PM of Pak. No govt there has completed 5yrs there. Strange democracy.

There is a country to our north that is in chaos. There is a country to our south that is in chaos. China has trapped Sri lanka. Pak will be next.

Now another covid variant is found in China. 

Last week was a strong week for us. Friday was a clear trending day. There was no sign of markets falling. The banks have started to participate and this is a good sign. 

Banknifty is now above the 200dma and 50dma. Wait for today's followthrough. One can go long as it will be a clear-cut breakout.

We will be starting the earning season very soon. It will be led by IT. This earnings season will be important. Let's see if nifty can go to an all-time high in this earning season.

MY TRADES

  1. If nifty stays above 17500 this week then I don't think it will come to that level anytime soon. I will be aggressively selling PE after this weekly expiry if nifty stays above that. For this week, I am not expectign nifty to go beyond 18k.
  2. For this week, I will be executing the below trade
    1. +1 X 17700ce
    2. -3 X 180000ce
  3. After this week, if nifty is above 17500 then I will execute the below in the monthly trade
    1. +1 X 17500pe
    2. -2 X 17300pe
    3. -1 X 17200pe
    4. -1 X 17100pe
    5. -5 X 17000pe
INTERNATIONAL MARKETS
  1. The US markets closed in the green.
  2. Europe closed in the green.
  3. Today the Asian markets are in the flat to negative. We have rallied a lof in the last week. So it makes sense to take a small gap.
  4. SGX is down by 30 points.
CRUDE AND $
  1. Crude is at $104
  2. $ is at Rs75
FII AND DII
  1. FII bought for 1900+cr and DII sold for 183cr






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