Trade setup for 14th October



 Happy Diwali guys. Looks like there will be dhamaka in today's market. 

Yesterday the US inflation data was out and it was worse than expected. The US markets fell and from the lows, there was a recovery that took the markets higher and closed in the green.

Dow fell close to 600 points and then closed with a gain of 800 points. There was a recovery of around 1500 points. All these happened in a single trading session.

I casually tweeted that I won't be surprised if the US markets would goto green yesterday when Dow was down by 400 points. May be gods heard that and said tatasthu.

Infosys numbers were out and it was good. There is a buyback offer as well. ADR was up by 4-5%. So today IT will all rally in the name of Infy. They approve a 9300cr buyback.

In yesterday's blog, I told that I am bullish and most of my trades are on the bull side. By seeing SGX which fell 200 points yesterday, I thought that my view, analysis were all wrong. But today morning, I got more confidence on my analysis.

Now I don't think 17000 will be taken out in this series. I will be selling 17000 pe and below aggressively for this monthly series. Bears tried to go below 17k many times and were not successful. Today all the bears will be killed and I wont be surprised even if we go close to 18k by Diwali.

So, it looks like the bear phase in the US is over and even our market which was a stable market will also rally along with the US. From now, I don't think the inflation will scare the market. Most of the bad news is in the price. Now the best and easy trade is to invest into sectors which have fallen a lot. Simply put, invest in IT and banks. IT will rally in gapup, so that may not be possible. Look for dips and get into the bullet train.

MY TRADES

  1. All the trades which I took for last expiry closed in the green. 
  2. My Algo trade closed in the green as well. The algo performance has not been great. It has just given less than 1% in this month. There are no flaws in the system which is developed. Now you just leave it to the time to play its game. I am expecting 3-5% in this month. Lets see.
  3. Now 17k may not be taken out in this series. So
    1. +1 X 17000pe
    2. -3 X 16900pe
    3. -3 X 16800pe
    4. -3 X 16700pe
INTERNATIONAL MARKET
  1. US in full josh. Dow gained 800 points and nasdaq gained more than 2%
  2. Europe closed in the green.
  3. Today Asian markets are in the green. SGX is up by 350 points
FII AND DII
  1. DII bought for 750cr and FII sold for 1600+cr
CRUDE AND $
  1. Crude is at $94
  2. $ is close to Rs 82. Today it may go below 82


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