Trade setup for 7th Dec

 Today is policy day. We need to see what the RBI will do. All experts are expecting a rate hike of 35bps. So it looks like the 35bps is in the price. If RBI surprises then we may have a move. So today I will not be starting the algo till the policy is over. 

The US markets closed in the red for the 4th consecutive day. Our markets are not showing any signs of falling. It is in a consolidation phase. Maybe we are waiting for Tomo's election result or today's RBI policy for a breakout or breakdown.

$ has crossed Rs 82 again and is close to 83. If this remains here then the chances of a breakdown are more than a breakout. Brent is below $80 as the demand is going down from Europe. There is a cap on the Russian oil price.

Even after weak $ data, banknifty is almost at its ATH. Not sure how to interpret this data. Its quite clear that there might be some hope from today's and Tomo's event. If markets don't go higher then there can be a fall, especially in the banknifty. So I will be executing a call ratio spread in the monthly series today.

Next week we have the US FED meeting. 

Adani ent has again got momentum. Yesterday it shot 3% and is now back above 4000. I am carrying the call ratio spread in this. Its already in a decent profit.

Today we have the winter session in the parliament and there is a more than 16 important bills which will be tabled.


  1. Yesterday, 19000ce for tomorrow was trading above 10rs. I sold this aggressively. I will carry this to tomorrow. I will be closing in a wonderful profit
  2. I will be executing the below trade in the below in monthly expiry
    1. +1 X 43500ce
    2. -5 X 44000ce
    3. -5 X 45000ce
  1. US closed lower. Dow lost 300+ points. Nasdaq lost more than 2%
  2. Today the Asian markets are in the red. 
  3. SGX is suggesting a fall of 35 points.
  1. FII sold for 600+cr and DII sold for 500+cr
  2. As expected. During major event they want to lower the positions.
  1. Crude below $80 and USDINR above Rs 82