Trade setup for 16th Sept

 Yesterday was the day when there was some weakness in the market. I told you that I was not comfortable in the rally where the banknifty shot up 1000 points after having a huge gap down the day before yesterday. I closed many of my long trades which were in good profit yesterday and then the markets fell. It was a volatile day yesterday.

The problem was not to we rallying. The problem is the US not rallying. The US is falling and we are going up. This divergence may not continue for long. Either the US will catch up or we will fall. Seeing the economic condition of the US, it does not look like catching up. So it's more likely that we will fall. Also considering the way we have rallied, especially the banknifty. In last 2-3 months, it has rallied more than 5k.

Banknifty went to ATH and from there it fell. Now that is the new resistance. The next leg of the rally will begin above 42k.

The talk of the town is Byju numbers where its revenue is 2800cr but the loss is 4800ce. There are a lot of memes on social media for this. 

Adani ent was another stock that was in focus yesterday as it made another ATH. At the start of the month, the last strike that was open for trading was 3650ce. Yesterday it closed above 8700ce. Now there are more strikes which are opened. I had clearly warned people not to short a stock that is at ATH.

Yesterday was the day of tires. All tires stock rallied. This sector had not rallied even when the auto sector rallied. Now they are all rallying. MRF almost close to 1lk. It has not gone to 1lk till now. Ceat was 20% upper circuit

Now all eyes on FED meet which is on 21st. So be careful if you are taking trades for this week.

The crude is falling and this is good for India. But now there is a serious concern of the economy growing as consumption is falling.

The US markets is at the support area. If US has to rebound then this is the point. If it falls further then the fall can be more. If that happens, then don't expect India to rally higher.


  1. I have taken the below trade in Adani ent
    1. +1 X 4100ce
    2. -3 X 4250ce
  2. I have bought some naked PE for banknifty for next month. Will add more legs if market rally continues.
  1. US fell and closed in the red. NAsdaq is falling rapidly. 
  2. Europe also closed in the red.
  3. Today the Asian markets are in the red.
  4. SGX is down by 100 points.
  1. Yesterday both sold in the market. FII sold for 1200+cr and DII sold for 900+cr
  1. Crude is at $91
  2. $ is at Rs79.85