Trade setup for 21st June


Finally after a volatile session yesterday, the markets closed in the green. In yesterday's blog, I did mention that all the events are over and now a drastic fall might be arrested which is what happened. But this does not mean that the bulls are back. Wait for a follow-through. Again it is from a trading point of view not from an investment. Investment is a big no till FII buying is back.

The stock which was in news was Vedanta. They closed their Tuticorin plant a few years back due to public outrage and now they are planning to sell it. I don't know why this is bad news. Did the market expect that to open again?? It's better to close things and move on if it does not work. Simple funda of life. I don't know why they took so long for this to happen. Whatever, markets did not like it and it fell 13% yesterday. In 2 months it has fallen from 400+ to almost 230 yesterday. I feel this is a good time to buy. I had sold 250pe. By the end of this expiry, I will take delivery. It is a good dividend-yielding stock as well. One of my clients bought it when it was 400+ to get 32rs dividend which they gave 2 months back. Now he is regretting. 

Not only Vedanta. All metal stocks are down. Tata steel is below 900. 

I love when the entire sector falls or rises sharply as the reversal identification is easy. Till now the metals were rallying and now they are falling. When the rally begins, they all will rally again together. Just wait for that and go long at that time.

The global geo-political situation is not very good. Israel's parliament is dissolved. France's Macron loses the majority

The US was closed yesterday and today its futures are in the green


  1. There was some relief in my portfolio yesterday when markets closed in green. But for this expiry I am stil in minor loss only.
  2. I was confident that market recovery would come, so I had sold some PE of quality stocks. Yesterday vedanta became ITM. I am happy to take delivery at this level.
  1. US futures are in the green
  2. Today the Asian markets are in the green.
  3. SGX is suggesting a +ve opening.
  1. Crude is at $115
  2. $ is still above Rs78
  1. FII sold for 1200+cr and DII bought for 2100cr