Trade setup for 28th June



 This month, the markets have been very volatile. It fell drastically in the first half and now we are seeing a sharp recovery. I am not sure if this recovery is a dead cat bounce in a bear market or if the markets have factored in the inflation, and rate hike, and have decided to move forward.

Usually, in a bear market, the bounces will also be strong and sometimes the entire thing will be given back. In a bull market, the correction will be sharp. 

We are in the expiry week and it is obvious that this week will be volatile. Nowadays, no need for expiry weeks. Markets are anyways volatile almost every day.

Today we have GST meeting to decide the taxation for online and offline gaming. So companies like delta corp might be impacted depending on the outcome. There is a rumor that everyone may come under 28% tax regime. 

Bajaj auto has finally passed a buyback of 2500cr worth of shares. Last week the share fell when management told that they are holding the buyback. Yesterday, it recovered after the buyback was confirmed.

Now if you see, all the metals are rallying. Yesterday, Hindalco tata steel, Vedanta all closed in the green. I think this is the time for buying these shares because when the entire sector falls they recover also at the same time. Wait for some follow-through and then one can enter in phases in these counters.

Srilanka has stopped the usage of oil for non-esential services. The situation s getting worse. If this continues then there might be a civil war there. Pakistan's state is also almost the same. We are really lucky that India's position is very very good. People who criticize India, should go and visit these countries and come. Then they will find heaven here.

Russia has defaulted on a debt payment. 

Iran has applied for BRICS. 

Maharashtra's situation is taking new turns everyday. The rebel camp is enjoying in hotels. The Thakray sena is making all efforts to dismiss all the rebels. Anything happening here will have an impact on stock market as Maharashtra is a big state. It would not matter much if it was a small state.


MY TRADES

  1. 16k may not be taken this week as per the data. So I took this trade
    1. +1 X 16000ce
    2. -3 X 16100ce
    3. -3 X 16050ce
  2. I am expecting banknifty to go lower as that was the weak index yesterday
    1. +5 X 33500pe
    2. -3 X 34000pe
INTERNATIONAL MARKETS
  1. US closed lower. 
  2. Europe was mixed. FTSE and DAX closed higher but CAC closed lower.
  3. Today the Asian markets are in the red. SGX is suggesting a -ve start.
CRUDE AND $
  1. Crude is going higher. It is now at $116 as UAE told that they don't have extra oil.
  2. $ is at Rs 78.44. This is a ticking atom bomb which can blast anytime.
FII AND DII
  1. FII sold for 1300cr and DII bought for 1200cr

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