Trade setup for 23rd Dec

 Now there is some instability in the world market. Till now there was a divergence in the Indian market where we were making highs and the world was falling. Now that may not happen.

Nifty was in the range of 18600-300. Day before yesterday, nifty broke this range and closed below 18300. Yesterday there was a follow-through. So this is a good indication that the markets are more likely to go down. 

So, it looks like there is no santa rally this December. There was santa rally last 2 years. 

If you remember, a few months back, the favorite stock was Tesla in the US and adani group stocks in India. At that time, I told that these favorites rise simultaneously and fall simultaneously. This month, Adani and Tesla are falling. For next month one can initiate a short trade in this. But make sure you have enough room as these stocks are high beta and if we are wrong then the pain will be severe.

I had taken a short trade in Adani ent in this month and now I am sitting with a wonderful profit. I will be taking another short trade today for the next month. I wanted to take few days back only but there was no margin left with me. Yesterday after the expiry, now I have some margin.

US shot up 500 points day before yesterday and yesterday it fell close to 700 points and closed by losing 350. 

The volumes in the markets have reduced as many institutions are on vacation. Yesterday we could experience slippage in the trading.

My algo trading lost around 5% in yesterday's trading session. Now it is sitting with a profit of 2% for this month. 

Banknifty was at 43500 at the beginning of th month. This expiry is a 5 week expiry. Even after 4 weeks, nifty was around 43500. I had initiated short positions at the beginning. The profits were not that great. I thought of doing some adjustments to increase the profit. Luckily I did not do that. Now it is falling. Lets see what is in store for me.

The covid cases are rising across the globe and India will be testing randomly at the airport. 

Today the Asian markets are in the red as the US handover was in the red and the Japan's inflation data is the highest in the 40 years. 

Yesterday Tesla fell close to 10%. IT has fallen from 400 to 120 now. Not just Tesla. Many tech stocks like apple, google, meta have fallen between 60-70% in the last few months. Their valuation was in trillions few months back. Now there is wipeout which is happening. Not sure how deep this fall can be

Turkey hikes minimum wage by 55% as inflation is biting them.


  1. Yesterday was a good expiry for my normal trades. But for the algo it was not a good day.
  2. Algo lost around 5%
  3. For next month I will be taking the below trade todayin adani ent
    1. +1 X 4000ce
    2. -3 X 4300ce
    3. -2 X 4500ce
  4. For this month expiry, I will be executing the below trade
    1. +1 X 18300ce
    2. -3 X 18400ce
    3. -3 X 18500ce
    4. -5 X 17500pe
  1. US closed in the red. Dow lost 700 points in the day and closed by losing 350 points. Nasdaq lost more than a percent.
  2. Europe closed in the red.
  3. Today the Asian markets are in the red. SGX is suggesting a 85 point gapdown. Yesterday night SGX had fallen almost 200 points.
  1. Surprisingly, yesterday both FII and DII have bought in the cash market. FII bought for almost 900cr and DII bought for 2200cr
  1. $ inching slowly to Rs 83
  2. Crude is falling as demand is going down which is a sign of slowing economy. This is good for India as we import oil
  3. Cude is at $81.66