Trade setup for 5th Dec

 I was out for the last week. So could not come out with blog.

Now all eyes are on the Gujrat elections and FOMC meet which will start in a week. 

On Friday, the US jobs data was out and the numbers were better than expected which means that the FED will be increasing the interest rates. Now there is an expectation that the FED will hike rate by 35bps.

When the job data came out on Friday, the US markets fell, and then there was a fantastic recovery in the second half and closed almost flatly. The yeilds have shot up.

On Friday, we did not have a good day. But that is fine as nifty fell after rallying 8 consecutive days. Now if you see the technicals, the RSI of nifty and banknifty was above 70 and then the markets have fallen. Now we need to see if markets goto the consolidation phase or if will there be a trend reversal. 

The same thing is happening with the US markets. Dow RSI is close to 70.

To be fair, its difficult to guess that as we have some major events coming. Even if there is a pullback, I don't think 20 DMA will be given back. So 20DMA will be strong support. To be on the safer side, keep your volumes low till the events are over.

Saudi prince MBS will be investing in credit suise. CS was on the verge of going bankrupt. This is a wonderful development. So now they have money to manage the company.

Today the Asian markets are in the green as China has eased some of the covid restrictions. But the US futures are slightly in the red. hongkong and Chinese markets are in the green.

On Friday, the November auto sales data came out and the sales were not good. Bajaj, hero eicher all fell on Friday. A slowing economy is first seen in the auto sales. So I would be careful before going long from here. In fact, most of my trades for this month is on the short side. But my volumes are low as we have events. I am not betting big on this market at the moment.

OPEC+ has agreed to keep the production as it is now. So now the brent is rising. 


  1. I have done the below trade for this week
    1. +1 X 18500pe
    2. -4 X 18300pe
  2. I have sold deep OTM puts of Adani ent, bajajfinance. BJP is more likely to come in guj. So Adanis and ambanis strocks will rally. This is the logic for selling deep OTP adani PE. I will do some adjustment if I am wrong or may take delivery of these.
  3. I am planning to invest in paytm now to average my investment. I invested 50k when it was 700 odd. Today I will invest another 50k. My SL is 400. 
  1. On Friday, FII bought for 5000+cr and DII bought for 700+cr
  2. I wonder how markets could fall with such a buying?? There might be some blockdeal which I am not aware. Will check that later.