Trade setup for 13th Sept

 We are on steroids. It looks like we will break 18k today. Yesterday it looked like 18k would be taken out, but that did not happen. As I told you before, usually these things will happen in a gap. So whoever took trades thinking that 18k is the resistance will pay a price today when there is a gap. This is the problem in positional trading. 

Yesterday in the last half hour, markets fell but it did not take out the day's low. I thought that 18k would not be taken out so easily, but I am already wrong. But luckily I did not take any trades. Today I will be taking trades in the weekly expiry.

Now all eyes on today's CPI data of the US. All are expecting that the data will be good and markets are expected to rally further. Then we have fed policy on the 21st. That is another major event that can change the direction of the markets. So make sure you go light into these events.

Goldman Sachs are planning to cut jobs.

HCL tech fires 300 odd employees who were in Microsoft project.

Retail inflation is back to 7%. So now RBI will again have to fight this with rate hikes. 

The cues are so confusing. Companies are firing, inflation is rising and markets are also rising. 

As I told that now banks will take a backseat and it's now IT. It was expected that when Nasdaq bounces, our IT would rally. My trades which I took in IT are in a decent profit. Now I feel that I should have taken more volumes.

Now there are rumors that the housing market in China is struggling. But this has been the news for some time now and not much impact is happening on the market. If the problem was real then we should have had some impact by now.

Now if you see the US markets, they closed yesterday close to its 20 dma. If 20 DMA of the US is taken out then we can expect fresh rally in US markets and even we would follow that.

Today it looks like we will close above 18k. We need to see if there is follow tomo. If that happens then I will close all my short positions and take aggressive longs as cup and handle patter formation will happen.


  1. Today at open I will be selling some CE
    1. -10 X 18300ce
    2. -10 X 18400ce
    3. -10 X 18500ce 
  1. US markets are on fire. They are rallying like the inflation problem is over. Dow gained and nasdaq also gained significantly.
  2. Europe closed in the green.
  3. Today the Asian markets are in the green. SGX is suggesting a +ve opening.
  1. FII bought for more than 2000cr and DII sold for only 800+cr
  1. Crude is at $93
  2. $ is at Rs 79.5