Trade setup for 17th October

 Markets are seriously giving all kinds of mixed signals. Just when you thought the worst seemed to be over as US markets rallied 800 points after its inflation data, the markets fell on Friday. The US gave back almost 500 points on Friday. 

In our markets, the way it bounced and the crude was falling, it looked like the recovery was real and I felt that 17k may not be taken out. 

Bhasin saab (TV analyst), known for being over-optimistic, told that 18200 by Diwali. :)

But things don't look as good as it looks on the outside. 

Now, all want the unemployment rate to increase, as that will be a sign of inflation cooling down. 

We have 7 more session in this month as we have 2 days holiday in the next week. I am expecting that the markets wont go below 17k and we may go up to 17300-400. I will stick to this view till 17k is taken out on a closing basis. If closing is below 17k then I will short aggressively as most of my trades will be in danger.

HDFC bank came out with numbers and the numbers are good. Even in the US, the banks numbers are good. JP morgan, morgan stanley numbers were good. So, today we need to see if HDFC bank will provide support or not. 

Bajaj auto numbers are also out and even their numbers were also good.

Today you have ACC, PVR coming out with numbers. It will be interesting to see how the cement has performed. That will give an idea of consumption going forward.

There is some problem in China. Their housing sector is on a verge of collapse. But the problem is what happens in China, stays in China.

In UK, the previous finance minister told that there will be no more tax cuts and he went ahead and told that the tax cut will be reduced. Now he is out and the new FM is telling that the taxes will go higher. UK is again having problems as they have capped their energy prices and winter is beginning in the UK and it's putting a lot of pressure on the govt to arrange for energy. Putin is standing in the corner and smiling.


  1. My algo seems to be going well. For this month, it has given a profit of almost 3% of the capital deployed. Let's see, if it can touch 5-6%
  2. I will be switching the algo to Kotak securities as Kotak has 0 brokerages for intraday. 
  3. I had taken a bullish trade last week and today we are set to open with a gap down. I will not add any adjustment nor will I add more positions. Its a wait and watch for me
  1. The world markets are falling again. Today the Asian markets are down.
  2. The US fell on Friday with no follow through after the Thursday rally.
  3. Today the SGX is suggesting a fall of 130 points.
  1. DII bought for 1600+cr and FII sold for 1000+cr
  1. Crude is trading at $92 and $ is at Rs 82.3