Trde setup for 31st may



Nowadays, the markets are behaving such that it's either very good or very bad. Till last week, all were talking about inflation, bad results, etc. This week it looks like everything is solved and markets will make new highs.

In the last 3 sessions, nifty has moved more than 750 points. Not much has changed on the ground. Today you have the GDP data coming. Let's see if the markets are sensing something good.

The beaten sector is now recovering. IT and Reliance are leading the market. Yesterday the banks were subdued as all were on IT.

As I told before, the signs were bullish as the US markets bounced when they touched the bear market, especially the S&P. There was short covering in nasdaq. So it was a no brainer that IT here also would rally. 

LIC numbers were out and the dividend was just Rs 1.5 which is very less. Its profit has fallen by 17% from last time.

The cryptos are again on focus and is gaining traction. Bitcoin shot up 10% and is now above $30k.

Biden and Powell are meeting. So the markets are slightly nervous, especially the US markets

EU has banned most of the Russian crude oil. So this will be a big blow to Russia. Now Turkey has agreed to mediate between Russia and Ukraine. It looks like the war is coming to an end as Russia is being cornered in the international markets. Maybe this is another reason why markets are recovering.



MY TRADES
  1. I had executed back spread and sold huge PE in Infosys. Now it is sitting in a decent profit. I will be in great profit if the rally in IT continues.
  2. Nifty has rallied slightly more in a short time. So I sold some 17k ce for this week. Let's see how that goes.
  3. I am planning to buy some equity in IT. Infosys and Mphasis are my picks. 

INTERNATIONAL MARKETS
  1. The US futures are flat. They will be opening today after 3 days. They had a holiday yesterday.
  2.  Europe closed in the green.
  3. Today SGX is in mild red. Let's see if we can close in the green today as well.
FII AND DII
  1. After a long long time, FII became buyers. They bought it for only 500cr. Let's see if there is follow-through. 
  2. DII bought for 1500+cr
CRUDE AND $
  1. Crude is rising and is now at $122. EU ban on Russian crude and China removing the restriction is some of the reason for the rise.
  2. In India, the dealers are protesting by not buying from OMC as they want the commision to be hiked. 

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