Trade setup for 7th October

 Yesterday was another volatile session. Nifty shot up and gave half of its gains in the second half. My intraday algo was able to make almost 2.5% return on the capital deployed. Currently, I am trading in only 2lak capital. Once, this is ready and reliable, I will scale it with more capital. I will scale slowly and not make the same mistake again and again. For now, I am not having any major flaws in the system implementation.

Nifty has shot up almost 600 in the last 4 trading sessions. Now you can expect some pullback or profit booking. I am not expecting the low of 16700 to be broken. So one can easily sell 16700 and below pe in the monthly series. Similarly, banknifty has shot more than 2000 points and even here there might be some profit booking. 

In the last few months, all are telling that there will be a recession. If it was such a huge problem, then it should have been impacted by now. I think the impact is priced in. From now, use every dip to go long. But make sure you respect the risk-reward. Look for sectors that will recover like IT.

Keep an eye on Crude and $. Yesterday $ was close to Rs 82.6. Now it is again back below 82.

Now we will have earning season where TCS will cut the ribbon on 10th. Last quarter, it fell 5% after the result. Let's see what will happen this quarter.

The new account settlement rule will kick off from today. Any unused money will be transferred to your bank account by today. This will happen on a quarterly basis. So this will be another task to add the money back. One can buy liquidbees on the thursday to avoid this. But the problem is remembering to do that.

Even after the bonus issue, nykaa is not able to make any major move in the markets. I am planning to buy a small quantity on this. Its for long term investment. 

Oil is going higher after the production cut by opec+


  1. I had bullish trade and I will be closing them today if nifty goes to green. I will not short, but will wait for a dip to go long.
  2. I will be doing a TCS earning trade. Lets see. I need to analyse the chart and then come out with a strategy. 
  3. I will be executing the below trade in nifty monthly expiry
    1. -1 X 16500pe
    2. -1X 16600pe
    3. -1 X 16700pe
    4. +1 X 16800pe
  1. The US markets closed in the red. Dow lost almost 300+ points and nasdaq fell almost 0.75%
  2. Europe also closed in the red.
  3. Today the Asian markets are mildly in the red. SGX is almost flat.
  1. Yetserday FII bought for almost 250cr and DII sold for only 49cr
  1. $ almost close to 82
  2. Crude is at $94