Trade setup for 11th Jan

Nifty fell from 18200 to 17800. The day before yesterday there was a bounce that gave hope that the fall might be arrested. Yesterday again that was proved to be wrong and nifty closed below 18k. Now again 18k has become resistance. Now all eyes are on the December CPI data which will be out today in the US. 

Markets are oversold in the short term. So if any good news on the CPI data today then the short covering rally can come tomorrow. Tomorrow's expiry will be interesting.

I did say that I will go long only if 18200 is taken out. So luckily I did not take any aggressive long position day before yesterday. Markets are weak and the recent low of 17800 is the support. If that is broken then markets may fall further. 

I am not expecting markets to fall too much from here, but 18200 is the strong resistance. If that is taken out then markets will goto 19k very soon.

Yesterday adani group stocks fell drastically. Adani ent fell close to 6%, ports close to 3%. I did tell long time back that, see how tesla will behave in the US and you can expect that to happen in Adani here. I had taken call ratio spread. Yesterday I sold the buy leg to increase the profit. 

Yesterday, Powell came and addressed the media and told that there will be some unpopular measures for controlling the prices. So indirectly, did he mean that there will be more hike?

The stock of the day yesterday was Tatamot. It shot up more than 6% and is now above 400 again.

Keep an eye on $ and crude. This will give indications of where the markets are headed.

There will be times when you cannot guess the direction of the market. At those times, stay out or keep positions low. You need not trade every day. 

Yesterday, we had tcs numbers and TCS closed by losing 1%. It opened by losing almost 3% and recovered 2%. Tomo you have hcl and infy 


  1. I took the HDFC trade as hdfc broke the range on the lower side and there has been a follow-through. I took the below trade.
    1. -1 X hdfc fut
    2. -1 X hdfc 2620ce
    3. -1 X hdfc 2620pe
  2. I will sell some deep OTM PE in adani ent. I will take delivery if Adani falls further.
  1. The US markets closed in the green. Dow gained 200points and nasdaq gained 100 points.
  2. Europe closed in the green.
  3. Today the Asian markets are in mild green. SGX is up by 20 points.
  1. FII sold for 2000+cr and DII bought for 1800+cr
  1. Crude below $80 and $ below Rs 82. This is good news. This is another reason why I am bullish at the moment in the shortterm