Trade setup for 6th July

 Today you have FED minutes. So all depends on how US will react today night. So make sure you keep your positions low.

Yesterday was a volatile session in India and also in the US. In India, we shot up and went to 16000. Everything was looking good and then suddenly selling came and nifty fell 150 points. All the things which rallied in the morning fell. Banks, RIL, metals, IT fell and took the markets into the red. We thought that FII selling came and markets fell but surprise, FII have bought for the end of the day. DII selling was also not intense then who the hell sold??

But in the US markets, it was the other way round. In the beginning, the markets fell and dow fell close to 600 points then in the second half there was a superb recovery led by the techs and dow closed by losing just 130 points. Nasdaq closed in the green and gained almost 1.75%

The important thing that happened yesterday was that the crude fell 10%. Now it is close to $105 per barrel which is good for India. The reason is that the recession fears are now increasing and the demand might collapse.

By seeing all these things, we can easily conclude that the markets are not yet confirmed and the volatility will continue. So don't assume that markets have bottomed and will rally from here. It might be a trap. Let's see FII data for some more time. Yesterday's buying can be a one-off which has happened many times in the last few months.

TCS will come out with numbers on Friday. This is how TCS moved after the last 3 results. So take a guess what will happen this time.

$ is at almost 80 which is also a concern. Yesterday it improved slightly. But the fear of it going worst is still there. Let's see how the FED minutes will take shape tonight.

The Crypto saga continues as it has again gone below $20000. Many exchanges are now blocking withdrawals and deposits. Some see it as an opportunity to make fresh investments. I prefer to stay away from this. Yesterday I met a person who has invested almost 20lak in cryptos and is now at almost 6lak. Now he is asking me what can be done. What can I say?

Now UK parliament has become unstable when some ministers are questioning Boris's leadership.

UK is an important country and any problem there will have an impact on global markets.

MY TRADES

1. My algo worked well yesterday. I was able to make almost 40k on capital of 6lk. For this month in 2 days I am sitting with a profit of 9%. These are just good days. Let's see how the bad days will shape up. I am sticking to this setup after doing a lot of research. Currently, I am doing it in the future. Will be switching to options once the setup becomes reliable.
2. I had sold a lot of PE of stocks in the last week of the previous expiry. Most of them are in good profit.
3. When reliance fell 10% few days back, it was an opportunity to go long. I sold some ATM PE and yesterday when the recovery came, it has given  wonderful profit. I closed some positions and booked profit.
4. For this week, I am currently having a decent profit. Fingers crossed. I hope markets done make a violent move tomo after the FED minutes.

INTERNATIONAL MARKETS

1. US markets are volatile. It fell drastically yesterday and recovered significantly.
2. Today the Asian markets are in red. SGX is suggesting a +ve start.

FII AND DII

1. FII bought for 1300cr and DII sold for only 300cr but markets fell 150 point from intradday high.