For now, it looks like the bottom seems to have formed. But I will consider that the upside will continue only when markets close above 16k and if there is a follow-through. In bear markets, the up rallies will be quick and will tempt you to enter. There is a high chance that it is a trap.
Yesterday, I ran my algo on my zerodha account where the day ended with a profit of almost 13k on a capital of almost 6lak. I will run this for the entire month and will be updating in my blog, twitter and fb. Lets see how this goes. There is a lot of work to be done on that front, but for now, the direction seems to be right.
I am selling PE which is deep OTM. Will sell aggressively closer OTM strikes if 16k is taken out with a follow through.
Yesterday, RIL was very volatile. Last week, it fell close to 7% when there was tax imposed on oil export. But yesterday, there was some stability and it did not fall much. This supported the markets and nifty gained significantly. The rally was due to banknifty. Banknifty seems to be less riskier bet for now. Banks are showing momentum and may not fall drastically. One can initiate the below trade in the weekly expiry
- +1 X 33900pe
- -3 X 33500pe
- -3 X 33400pe
- -5 X 33300pe
- Reliance down 7% and no follow. What else ?? So took this trade
- +1 X 2300pe
- -5 X 2100pe.
- I have taken the below trade in nifty
- +1 X 16000ce
- -5 X 16100ce
- Today I will be taking the below trade
- +1 X 15400pe
- -5 X 15200pe
- When US sleeps, the world sleeps. So nothing speacial from there
- Today the US futures are in the green and the Asian marekts are also in the green.
- SGX is suggesting a 50 point gap. I feel that gap will not be sustained. My algo might go short at opening and will manage the trade for the day.
- The relentless selling is not stopping at all. I wonder, how much more do they have to sell.
- FII sold for 2150c yesterday and DII bought for only 1700cr
- As I told before, I will not make any fresh investment in stocks till FII turn buyers. You can see now, stocks like hindalco, tatasteel, vedanta are all 50% discount from what they were few months back.
- Crude is at $114
- $ is at Rs 79
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