Trade setup for 2nd June


Suddenly, markets are making huge last hr moves. Not just India, but even the US markets are behaving the same way. I spoke to some people as to why this might be happening. They are saying that as SEBI removed the intraday margin, this is the reason. But what about US markets?? SEBI did not do anything there right. Whatever is the reason, as a retailer, you have to bear with it and adapt to it. 

Yesterday, I had to go to a function in the second half. I had deployed my entire fund and was out. All the positions are in wonderful profit. I took safe trades so that I need not be worried when I was out.

For now, it looks like the markets have made a bottom. This view will change if 16000 is taken out again. The specialty of falling markets is it does not give opportunity for people to exit. Falling is usually swift in nature. Since markets are not falling drastically, I am bullish on this market. 

This is an opportunity for the beaten-down sectors to cover. IT has been beaten down. Don't jump in and enter IT aggressively. Wait for Nasdaq to stabilize and move higher. You can invest in IT stocks at that time. I love the market when the entire sector goes up or down together. Because, at that time, it is easy to judge the direction of that sector. 2 days back when the IT rally happened, it looked like the IT recovery would begin. But that did not happen and IT is falling again. This cannot go for long, the bottom will be formed soon. 

GST collections for May have gone down by 16%. It made a record high in April. It was expected as when interest rates go high, the consumption goes down.

Now, EU has decided to reduce oil from Russia. Now Saudi has decided to increase production and fill the gap. This news caused the oil to fall in yesterday's session.

The cryptos are again falling and is in a bear market. This week, bitcoin fell below 30k and there was a sharp recovery. Now again its below $30k


  1. I sold deep OTM strangles. Today I am in a very sweet spot as I will be taking the entire premium.
  2. I will be doing banknifty future algo trade from today and I will be updating. Yesterday I did not do. 
  3. If nifty fall further today and tomorrow then I will be adding more legs to the back spread that I have taken.
  1. The US closed in the red. But there was a sharp last hr rally like we had in the Indian market.
  2. Europe also closed in the red.
  3. Today the Asian markets are in the red. SGX is down by 70 points.
  1. The selling continues. As I told, no more fresh equity investment till FII are sellers.
  2. FII sold for almost 2kcr and DII bought for only 1000cr
  1. Crude is at $114
  2. $ is at Rs 77.6