Trade setup for 17th May


Friday was an important day. For 10 consecutive days, nifty has closed in the red. The first half gave a hope that the bottom had formed and now there might be a short-covering rally. But that was not the case. Markets fell drastically in the second half on Friday.  The most interesting part of this fall is that even VIX fell. I don't know what is happening in the market. Whenever there is a fall, it is the vix that shoots but this time that did not happen.

Yesterday was another important day. There was no selling which came in the second half. So for now it looks like the bottom seems to have formed. But, I will take a bullish trade when 34k is taken out and 16k is taken out on the closing basis.

Today we have LIC ipo listing. I had applied 3 lots in 3 different account and I got allotment in 1 account. Lets see how will this list. I feel it will open with a premium as the entire world is watching the biggest Indian IPO. So the DII would be forced to keep the price high. But anything can happen tomorrow. I am not expecting a very huge premium as the issue is a very big one. Grey market premium is higher than 950

If bulls need to bounce back then this is the point. If the recent low is taken out then markets can fall further but if the 16200 is taken out then you can assume that the low has been formed.

In China, the lockdows are removed in Shanghai and public transportation to begin soon. China has reported 0 cases in last few days. So this is good news as consumption is about to impove. Crude oil is already reflecting that.

Eicher mothors came out with numbers and it shot up 7% yesterday

IT is in a bear market. 

Argentina central bank hikes rate to 49%. Theit GDP and currency situation is very bad. Its like sri lanka. So dont think of opening FD in Argentina :)

Sril lanka says that they have petrol for only 1 day.

Finland and Sweden are all set to join NATO. This has defiitely irker Putin. Now the question is what next will he do? Will he do anything crazy?

Elon musk is looking to buy Twitter at a lower price.


  1. I am fighting as the markets have fallen drastically and my trades are in mild loss.
  2. I have still not added any adjustment to the covered call trade which I took sometime back. My loss is now 15k per set. I have a lot of options to do here. I am waiting for the right time. If markets recover then no problem.
  3. I have sold PE of many companies to take delivery. 
  4. I am working on a futures algo trade and it seems to be working fine. I am finetuning it to improve its performance.
  1. Yesterday there was China data which came and it was not good. So the Asian markets were subdue. 
  2. The US markets are not falling much now. But the Nadaq is falling. So even IT in India is also in the bear market.
  3. Today the US futures are in the green and SGX is suggesting a +ve start. Lets see if 16k can be taken out or not.
  1. The relentless selling continues. Dont invest agessively till they become buyers. Invest in phases
  1. Crude is now at $113
  2. $ is at Rs 77.8