Trade setup for 12th Jan

 Another volatile day yesterday. Banknifty fell 250 points at open and then in the next 5 minutes it was flat and in the next 10 min, it was up by 250 points. This is how the volatility was. Similarly with nifty as well, there was a same kind of volatility.

So for now, yesterday's low will be the strong support for the entire month. If that holds and if yesterday's high is taken out then there can be a big rally upside. For now, I am bullish and for the month I will be selling PE's aggressively and I will be pyramiding.

In the above chart of banknifty you can clearly see that the banknifty is struggling to break that. If that is taken out then expect a huge rally. 

Today you have Infosys and HCL results. Usually, when the markets have fallen, the earning season will take it higher. It looks like the setup if there now. For next week, I will be bullish. I will wait for 18k to be taken out and 18200 to be taken out for going aggressively long.

By chance, if yesterday's low is taken then that should be the SL for all long, and its time for shorts.

Maruti revealed its concept EV in the auto expo. The auto expo is attended by many business leaders.

Today is US cpi data. I thought it was yesterday. The expectation is that the inflation might have cooled but FED will not stop with its monetary actions.

Today is expiry and I am not expecting huge volatility in the market as this week has been fully volatile. Most of my trades are in the green for this week. With the remaining funds, I will execute some ATM straddles and will manage them for the day.


  1. My algo closed in the green despite volatile day. I did carry some deep OTM options which the algo had sold for today. I will close them at open and allow the algo to take over. 
  2. No fresh trades were taken
  3. For today I will be executing 18950 straddles. 
  1. The US closed in the red. It looks like the world markets are stabilizing. We did not fall more when the US markets was falling. Now they are recovering. But FII's are selling in our market. Will we rally at par with US or will we go sideways??
  2. Dow shot up close to 300 points and nasdaq rallied 200 p oints.
  3. Europe closed in the green
  4. Today the Asian markets are in the green. SGX is up by 50 points.
  1. FII sold for 3200cr and DII bought for 2400cr
  1. Crude again above $82
  2. $ at Rs 81.6