Trade setup for 13th Oct



 Yesterday was FED minutes and FED is clear that the higher rates are here to stay. The US markets which were in the green closed in a mild green. It looks like the worst for the US markets are over. Yesterday I did show you how the US markets are in the critical support zone. If it has to recover it has to recover from here. If it falls below this level then the fall can be more as it will be a confirmation of the reverse cup and handle. 

I am slightly bullish from here. Look at our markets. We went below 17k 2-3 times and from there we are having a rally on the upside. So it is evident that 17k is a strong support. I will change the view if 17k is taken out on closing basis.

In banknifty 38500 may act as a support. Things may change if that is taken out on a closing basis.

We also have Diwali coming in some time. Usually, Diwali time is good for markets and we usually trend higher.

Yesterday we had the CPI data and the number was bad as expected. It looks like RBI will not have relief anytime soon.

Internationally, crude oil is falling which is good for India. But, if the fall is due to consumption, it will impact the global market and we won't be spared during that time.

Yesterday we had HCL and Wipro numbers. Wipro profits fell and HCL profits rose. We need to see how the IT pack will react today. Today you have infy and mindtree numbers. Can these change the direction of the market?? I am not able to do any earning trade this time as my margins are all deployed and I am working on intraday algo trades.

Byju lays off 2500 employees. It looks like the IPO hype that they wanted to create and dump it to retail will not work so easily.

MY TRADES

  1. MY algo is turning out well. Its barely in the profit, but there are not much flaws in the algo now(both technically and strategically). I am now looking to move this to a 0 intra brokerage like kotak so that the implementation cost is reduced.
  2. The ratio spread which I had taken for this week is in wonderful profit. 
  3. For today, I will be selling 17k pe aggressively with the remaining margin.
  4. I will be executing the below trade for the monthly series
    1. -1 X 17250ce
    2. -1 X 17250pe
INTERNATIONAL MARKETS
  1. The US seems to have bottomed out. It was in green but closed in mild red by the EOD.
  2. Europe closed in the red.
  3. Today the Asian markets are in the red. SGX is down by 60 points
FII AND DII
  1. FII sold for 500+cr and DII bought for 82cr
CRUDE AND $
  1. USDINR is improving. It was close to 83. now it is close to 82.
  2. Crude is at $92


 

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