Trade setup for 26th Aug



Yesterday was a brutal expiry. Markets killed both the calls and the puts. In the first half it killed all the CE writers and then in the second half it killed all the PE writers. Being monthly expiry, it was expected. 
So I did not get trapped in this as my trade volumes yesterday was very less. 

Yesterday I sold nifty futures at the top as my data was suggesting that there would be a fall. Nifty fell and I was able to capture around 200 points. To carry that to today I converted that to secured put by selling ITM PE.  It looks like I might close that today as SGX is suggesting a gap up.

Today I will be doing a live trade at 10 AM on youtube. Make sure you attend that.
youtu.be/xUUYdA7fUjk

Now markets will be in a consolidation phase. The range will be wider. It will be from 20 DMA to 17900. So you can see spikes but they will be in this range. The more time the nifty will be in this range, the more confidence you should get to go long after the breakout.

I was expecting markets to fall when RSI was at 70+ and we did get a fall. For now it looks like the 20 DMA will be protected. If that is taken  out on a closing basis + with followthrough on downside then we may go lower. Till then this is a buy on dip market only.

Now all eyes on the Jackson hole. It may be a non event as the central bankers may discuss the usual things.

 I don't know what is Adani smoking these days. Its on fire. It has offered to buy NDTV. Now they are giving open offer to ambuja and ACC. The fact is Adani is over levereaged and not many MF have investment in these. So if you are an investor in Adani group, make sure your exposure is less as the risk is high. Adani group stocks has rallied significantly in a short time. But I seriously appreciate the guts which the man and the group is taking.

The bollywood boycott is turning bad for the industry. Liger got releases yesterday and it looks like even that is a flop. PVR, Inox are running shows which are empty. Bollywood need to get to the basics and understand throughly what needs to be fixed.

MY TRADES
  1. Most of my trades are in decent profit now. 
  2. Today I will be doing a live trade at 10 AM on youtube. MAke sure you attend that to implement a strategy with me.
INTERNATIONAL MARKETS
  1. US markets rallied and closed in the green. Dow shot up 300 points and nasdaq gained more than 1.5%
  2. Today the Asian markets are in the green.
  3. SGX is suggesting a 100 point gapup
CRUDE AND $
  1. Crude is at $100
  2. $ is at Rs79.8
FII AND DII
  1. Surprisingly FII bought for 350+cr and DII sold for 300+cr
  2. I was expecting FII to be sellers yesterday. So we can conclude that it was just a expiry play

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