Trade setup for 28th Nov

 It looks like now the covid is back. In China, the cases are rising and China has imposed a new restriction. Now we need to see if this is just a China problem or if this will even spread to other countries as well. Now there are a lot of clashes which is happening in China due to Covid restrictions. For the govt, it's a real pain if the cases rise. If you lock down then it's a problem. If you do not lock then it's a different problem. 

The option premiums were low as vix is low. Now, the vix may shoot and the premiums may rise. This is a good opportunity for options traders to take positions.

As I told this before, markets have rallied continuously since oct. So there will be a slight pullback or markets will go sideways. Don't short this market. Markets will not give away all the gains that they made in the last 2 months. Instead, use this opportunity to go long or play sideways.

Paytm did not get the banking licence. RBI has asked them to reapply. This is another knock. Expect the stock to fall further today.

Bisleri may be bought by Tata's for 7000cr. An iconic brand joining hands with another iconic brand.

Oil is falling. This is good for India but remember the big countries are feeling the pain if oil prices fall. So they wont be quite. What they do will have an impact here as well.

Govt is scrapping govt vehicles more than 15 year. This is a good news for vendors which provide govt vehicles like tata motors, ashok leyland. This will be a great game changer if this is applied for private vehicles. It is done in Delhi as the pollution is Delhi is more than other cities.

I did tell than 18500 is a resistance. If markets break that on a closing basis and if there is a follow through then ATH is a cakewalk. Markets did close above 18500 but it looks like there is no follow-through today. Let's see if markets close in the green today. If they do then one can go long aggressively as ATH will happen very soon.

The put call ratio is at the highest in the indian and the US markets. This means that the markets may correct slightly. This is another reason why I have taken shorts for this week.

banknifty is at almost 3% from its 20DMA. So there might be some retracement.


  1. For this week, I had taken a short trade as the markets were losing momentum. If this weekly candle is in the red then I will be going long in the markets.
  2. My algo trades are going fine. For this month, it has made a profit of more than 6%. For this week, I will be trading in 5 accounts with the same capital using algo. Gradually, I will be scaling and my aim to be intraday in other 3-4 months.
  3. The call ratio spread in Adani ent is in wonderful profit. I am sitting with more than 4% before even the month has started.  I am planning to do some adjustment to reduce the margin, so that I can forget the trade or I may even close the trade.
  4. For this week, I am planning to sell 18000pe aggressively. 
  1. Today the world market is down due to the china problem.
  2. The US futures are also down.
  3. SGX is suggesting a 60point gap down
  1. FII bought for 360+cr and DII sold for almost 300cr
  1. Crude is falling and is now close to $81
  2. $ is at Rs81.78