Trade setup for 8th Dec

 Today is expiry day and more importantly election results day. Do you guys remember what happened to last result day?? I remember as I was active in trading. First, the news came that congress was leading. As soon as this news came, markets fell drastically(i don't remember the points). Then slowly, BJP took the lead and finally won. As BJP seats increased, market recovered and wend into deep green. So, don't expect anything to happen today. We all know that BJP will win today. The entire world knows this. Even exit polls show this. But it wont be a smooth ride today. The best thing to do today is stay away. I will not be running the algo trades today. May be in the second half I may sell some deep OTM and make some chillar money. 

My positional trades are all on the short side for now. I feel the risk reward is high on the short side as markets have rallied a more and BJP winning is not a surprise. Markets usually react violently if there are surprises. Now the surprise factor can be AAP. If it takes more seats then that might be an event to trigger the fall.

I have sold huge qty of 19000ce at 10rs day before yesterday. Yesterday it was close to 3rs. Today it will goto 0. I have even sold huge qty of 19000ce in monthly series as well.

The US markets are also weak. Last 4 consecutive sessions they closed in the red and yesterday it was flat. The techs are cripling with the fear of recession.

Keep an eye on $. Its close to Rs 82.5. Banknifty cannot go higher with high $ price.

Yesterday, our markets fell and then there was a rally upside. In the last hour, nifty fell badly. The major fall came from reliance which fell more than 2%. It was obvious, you have gujrat elections and Gujrat stocks like adanis, ambanis were having a move.

Nifty may test its 20DMA and if that is not protected then it may goto 18300,18000 gradually. I will take aggressive short positions if 20DMA is taken out.


  1. Yesterday the algo was able to make more than 1% profit.
  2. Today no algo trades. Just enjoy the election commentary.
  1. US markets are flat. US futures are in the red.
  2. Europe closed in the red
  3. Today the asian markets are mixed. SGX is flat. Hongkong is up by 2% as outdoor masks are not mandatory in the city.  Japan in the red
  1. Again FII have started selling. They sold for 1300+cr and DII bought for just 300+cr
  1. Crude at $77. 
  2. $ at Rs 82.5