Trade setup for 13th March

 When it rains, it pours. Till now it was only bad news that was getting highlighted. 

BAD news

  • Inflation is high
  • Nasdaq tumbling
  • Crypto getting doomed
  • Srilanka's president resigned and the chaos continues further
  • Russian war not cooling
Now suddenly we are getting good news
  1. Overnight, dow fell close to 400 points and recovered most of it. But still closed in the red. The future however is in the green
  2. Powell has been reinstated as fed chairman. 
  3. Crypto finding some landing. 
  4. Srilanka got a new PM
Now the big question is whether this bounce will get sold into or not. I feel no. We are definitely in the oversold territory. So there might be some short-covering rally.

Nifty has fallen around 1700 points in the last 9 days. All the 9 days we closed in the red. So on an average, we have fallen 200 points per day which is slightly too much

Yesterday, Powell told that there won't be a soft landing for the economy by controlling inflation. He also suggested another 50bps hike in the rate in some time.

Today you have results of SBI, techm. Usually, SBI results change the sentiment of the banknifty if it is negative. Let's see if banknifty sentiment is changed from here.

Yesterday we have consumer inflation which came at 7.79 which is the highest in 8 years. So it is very much expected that the RBI will hike the rate again in the next policy in June. 

Tata motor losses fall to almost 1000cr. They are one of the major player in the EV segment. Around 350 it is good for accumulating. I have sold 350 PE in tamo.

Another cryptocurrency called Luna has lost its significance after it lost its peg. Not sure what this means, but people who invested in this have lost significantly. So the moral is have small exposure to cryptos as they are dangerous and not regulated.

Softbank lost $20 billion in the crash of nasdaq and the markets. Today its shares are up by 9% in Japan. So all the asian markets are in the green.

Finland and Sweden are planing to join NATO. This has irked Russia. Will Putin do anything??

  1. I have invested 3lak in stocks. 50k in each of these companies infy, ril, itc, vedl, tamo, icici. This is for the long term.
  2. I was mildly bearish on RIL when it announced its results. It has fallen drastically and I had to do adjustments.
  3. I had taken a nifty long trade at 16300 and I converted that to a covered call. I have not done any more adjustments to that. I am sitting at a loss of 15k per set. I will goto a profit if it goes above 16k. Let's see.
  4. Yesterday I sold 15800 PE in the next week's expiry. Today that will be in good profit. I may close that today.
  1. The US markets have at least stopped falling drastically. Is this a pause or have they really stopped??
  2. Dow closed in the red for 7 days. Nasdaq managed to close in the green. 
  3. Apple is no more the most valued company. It lost to Aramco. 
  4. Europe closed in the red.
  5. Today the Asian markets are in the greeen. Sgx is suggesting a 200 point gap
  1. Crude is at $109
  2. $ is at Rs 78
  1. This is getting scary. 
  2. FII sold for more than 5000cr and DII bought for 4800cr