Trade setup for 22nd Dec


Sorry for not writing blogs for some days. I was in Goa for a client meeting. So did not get time to blog. I had been to a casino in Goa where I played Roulette with 3k and made 2.5k. I lost 500rs. I went there for entertainment and not to make money as the math is such that, beating a casino is very difficult with little money.

Now the markets are jittery. One day it is up and the other day it is down. This week we started around 18300 and it looks like the expiry is somewhere around that. The straddles would have made wonderful money, but who knew.

Yesterday, the markets fell in the second half as bank of japan has tweaked the 10 year bond yield. Their move suggests that the economy may have a bad time in the future. This triggered the fall and nifty fell almost 300 points from high. Banknifty fell almost 1000 points. 

The best part was that my algo was able to catch this fall and it made a staggering 9% yesterday. Till yesterday, it was sitting in a loss of around 2%. Now it is at a profit of 7%. You have to believe in a system and hope that the dots join. The difficult part of algo is to come out with a successful strategy and more difficult part is to stick to it when it does not work. There is no right or wrong method. Luck also plays an important role.

Now, vix is above 15. The chances of markets going higher is low. It looks like the December series may not cross 19000. It's at 9. Today SGX is suggesting a gapup. One can easily sell them and buy 19300ce for reducing margin.

 Now yesterday's high is the resistance for banknifty. If that is taken out then yesterday's low may not be reached again. 

The covid fears are back. In China, the cases are rising every day. Even India is seeing a rise in cases. The masks in public places can become mandatory again. 

There was a celebration for Messi in Argentina. He was finally taken home in a helicopter due to congestion.

Now many companies are cutting jobs. The markets are going higher and higher. Not sure if this divergence is the new normal.

The Adani companies which had a fantastic rally this year are now seeing a fall. Not sure if this is profit booking or trend reversal. I had a short trade in Adani ent and we are in the last week of the month and I am sitting in a wonderful profit.

Yesterday the US markets closed in the green. The Dow shot up more than 500 points. 

Tesla shares are tanking. It's at 52 week low. Elon musk is looking for a new Twitter CEO.


  1. Yesterday the Algo had a fantastic run. It made almost 9% profit in all 18 accounts which I am running. 
  2. Today, for intraday, I will be executing the below trade with SL
    1. -1 X 18300ce
    2. -1 X 18300pe
  1. The US closed in green yesterday. Dow gained more than 500 points. NAsdaq gained 1.5%. Nike and fedex numbers were good.
  2. Europe closed in the green.
  3. Today the Asian markets are in the green.
  4. SGX is suggesting a 100 point gap
  1. Crude is at $82.5
  2. $ is almost at Rs83. Keep an eye on this. Banknify which had a rally from 2-3 months can be arrested if it manages to go beyond 83
  1. FII sold for 1100cr and DII bought for 1700+cr