Trade setup for 1st june



 Again markets are giving confusing signs. The day before yesterday, the IT and RIL rally was so strong that it gave confidence that now IT and RIL is going to lead. But again yesterday it fell and there has been confusion in the trend. It looked like, bans would support. But in the last hour, you could see that even banks fell drastically.

The earning season is over and from now the global cues and macros will decide the direction of the market.

Yesterday the Indian GDP data was out and it is as expected. It has come at 8.7%.

EU leaders have agreed to cut 90% of oil imports from Russia. Not sure if this decision will escalate the war situation or will it reduce the Russian aggression.

Biden and Powell had a mild discussion on inflation. The US stock markets started speculating the outcome and the dow closed in the red yesterday. For May, Dow will be closing in the red.

MY TRADES

  1. The VIX is still higher and the options premiums are also good. The trades which I have taken in the weekly and monthly expiries are in the green.
  2. I have started trading bank nifty futures using algo.  The returns are decent and the live pnl and backtesting pnl is almost the same. Yesterday I was able to make a profit of 20k. The capital needed to do this is almost 5lk. I will not scale the capital for this month. I will be updating every day on how the algo works. Today I will not be able to trade that as I am going out in the second half and I prefer to avoid these trades. 
  3. I will be selling puts if markets open in the red as I am expecting it to recover. Evening, I will decide whether I should carry that tomorrow or close it today only. I may sell 1 or 2 strikes below PE
INTERNATIONAL MARKETS
  1. US markets closed in the red. Again nasdaq is falling. But today the US futures are in the green.
  2. Europe closed in the red.
  3. Today the Asian markets are in the flat zone. SGX is also flat to negative.
FII AND DII
  1. Again the selling continues. The day before yesterday they bought after a long time and again yesterday they have started selling. 
  2. Yesterday they sold for 1000cr and DII bought for 1800+cr
CRUDE AND $
  1. Crude is rising. Its now at $116. This increase is bad for India. 
  2. $ is at Rs 77.6

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