Trade setup for 19th Aug

Today is Krishna janmastmani. Happy Krishna janmastami to all readers. I wonder how there is no holiday for this. 

Its 8 consecutive days of green. It looks like the bears have gone for a vacation. Each and every dip is being bought. The more higher it goes, the more confidence I am getting to short the market. In the last 23 trading sessions, only 4 days we closed in the red. Usually when the markets are rallying in the first 3 weeks then the expiry week will be in the red as there will be profit booking. The same thing happened last month as well. But the last week gave more rallies. This time the rally has been overstretched. So last week could be in red. So most of my trades are on the short side.

Yesterday, the stock of the day was Adani enterprise. In fact, it has been the stock of the year for some time now. It has gone from almost 200rs to 3000+ in less than 2-3 years. Now it has rallied a lot. You can see the RSI which shows that it is 90+. For a fno stock, this kind of rally may not sustain long. So I am executing the below trade today(in my trades)

Now its time to be cautious. People with cash, do not enter now. Wait for a decent dip.

The dollar index is also rising. Analysts are expecting that the FED will hike the rate by another 75bps in the next meet.

The key index that you need to keep an eye on is the US market. Because, unless, the US cracks and falls, we won't fall. As I told you before, we are just mirroring the US markets. You can see that the dow RSI is 70+ and Nasdaq RSI is 64. I will short aggressively when the US markets start cracking.

The crypto markets are picking up. Ether is up by 100% from its June low but bitcoin has not gained that steam. Today they are all down. I would stay away from these until there are some regulations in place and volatility reduced. But you don't make huge money when those things happen. This is the time for anyone to take the risk and make good money. But I will skip it.


  1. Most of my short trades are still in minor loss. But now when markets start to fall or even if the momentum is lower, I will start making profit.
  2. Today I will be deploying almost 20 lak in adani ent
    1. +1 X 3150ce
    2. -5 X 3600ce
  1. The US markets closed almost flat after falling. The buy on dips is happening even in the US markets.
  2. Europe closed in the green.
  3. Today the asian markets are mixed. Some are in green and some in red.
  4. SGX is suggesting a -ve opening.
  1. Crude is rising. Now it is close to $96
  2. $ is at Rs 79.8. keep an eye on this as well. As 80 might change the sentiment.
  1. Surprisingly, they sold for 1700+cr and DII bought for 470cr.