Trade setup for 6th October



 Markets are all over the places. Till last week it looked like we would test 16000 but in just 1 trading session, nifty has shot up almost 400 points. Yesterday SGX shot up 200 points and then it went to red and then closed in the green. Now it is up by almost 80 points. 

Not only our markets. Even the US and other global markets are acting crazy. This is indeed volatility. Hangseng shot up 5% yesterday. At an index level, shooting 5% is really crazy. Imagine, what would have happened at the stock level.

Finally, Elon musk has now agreed to go ahead and buy Twitter. As soon as this happened, Twitter shot up almost 22%.

On Monday, all sectors shot up. Bajaj finance shot up almost 5%. Banknifty gained almost 1000 points. Reliance showed strength. Today we need to see if there is follow-through in all these. If there is good follow-through and strength then we may not even come back to 17k. One can easily sell 17k PE for this month expiry. But make sure you have strict SL.

Today is the weekly expiry and we are opening after a holiday. So there will be a holiday. I am keeping an eye on 20 and 50DMA on nifty which is close to 17470. This may be some kind of resistance. If this is taken out today then it will give me more confidence on the bullish side.

I am bullish on IT and Reliance. I will be going long today. Yesterday's candle low is the SL. Its a simple trade where is risk-reward is on your side. Using options, you can turn the reward probability more on your side.

Yesterday there was OPEC+ meet and they have decided to reduce production. Obviously, the oil prices are surging.

Russia claims that they have taken a lot places from Ukraine. Ukraine is telling that they have taken back many places. God knows who is winning and who is losing.

MY TRADES

  1. My algo trades are working good. The last 2-3 times, when I ran algo I found some major flaws in the system. I have rectified all of them. So for now there is no issue in the algo. But I need to see if the system is reliable. I am updating my social media with the result. I will at least run this for this month with the capital of 2lak and will then take a call on scaling.
  2. I will be executing the below trade in stocks
    1. -1 x 2900pe TCS
    2. -1 X 7000pe bajfin
    3. -1 X 1360pe infy
    4. -1 X 2300pe RIL
  3. For today's expiry, I will be executing the below trade
    1. -1 X 17400ce
    2. -1 X 17400pe
INTERNATIONAL MARKETS
  1. US markets closed in flat terrain. Today the futures are in the green.
  2. Yesterday the Europe closed in the red.
  3. Today the Asian markets are in the green. Hangseng is flat after gaining 5% yesterday.
  4. SGX is suggesting a 100 point gap up
FII AND DII
  1. FII and DII bought on Monday. FII bought for 950cr and DII bought for 1350cr
CRUDE AND $
  1. Crude is now at $93.5
  2. $ is at Rs 81.5





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