Trade setup for 19th May

 This is the height of volatility. This month is May and there is mayhem in the markets. Markets are moving all over the place. It looked like 15700 is the bottom and markets would move ahead. Markets did move 500 points from there and things were looking promising. The up move came when China relaxed some restrictions in their major cities. But it looks like the bounce was a dead cat bounce. 500-point dead cat bounce?

I thought that one can go long if 16200 is taken out. It did take out but now it looks like even 16k will be taken out today on the lower side. The reason why did not go long aggressively was that the FII still has not turned green. I would have gone all-in if FII were in the green. 

The inflation fears are still there. 

Nifty future prices are at a discount. Not just the current month, but also June and July month as well. This is the first time I am seeing this kind of future pricing. So it did give an indication that the markets would fall and it looks like it is right.

Yesterday, Target, a retail chain in the US came out with numbers and the numbers did not meet the expectations. After seeing results from Walmart, Target, Lowe's, people have started doubting the demand on the US consumers. This caused panic in yesterday's market and the US markets fell drastically. Target fell 25% in yesterday's trade.

Nasdaq fell 5% and dow fell more than 1000 points. It had been a long time since dow fell more than 1000 points.

A few days back, I invested 3lak in 6 companies. I had mentioned that in my blog as well. As of today, it is at a loss of around 2%. That's fine as it is a SIP what I am doing which will be for the long term. I will average that as markets fall further.

Melvin capital which had huge losses due to a short squeeze in meme stocks like AMC etc is now closing its fund and returning the money to its investors.

Tesla has been removed from the S&P ESG index telling that there are inhumane methods being followed in Tesla manufacturing plants. Elon musk is angry and has tweeted against the govt, authorities etc. Tesla has fallen more than 35% from its all-time high.

There s a huge shortage of grains across the globe due to the war in Ukraine.

Ukraine officials are telling that they are gaining control over Mariupol and Russia is telling that they have control of Mariupol. Not sure what is right.


  1. I had sold some 16kPE. Today that will be in danger at the opening. I will have to do a lot of firefighting trades or close with some losses.
  2. It looks like markets may go below 15k in some time. I will not be investing anything in stocks till FII turns buyers.
  1. US markets fell drastically yesterday. Today the futures are also in the red. 
  2. Asian markets are also down and out. Nikkei is down more than 2%. 
  3. SGX is suggesting a 300+ point cut. The straddle premium yesterday was 150. Today there is a cut of 300+ points.
  1. The selling by FII continue and now DII are also not supporting the market by buying
  2. FII sold for 1200+cr and DII bought for only 300 cr
  1. Crude is at $110
  2. $ is at Rs77.7