Trade setup for 17th Jan



 My view has totally gone wrong yesterday. I was expecting markets to go near 18k. At the opening, there was a gap-up despite SGX showing a flat day. Then the markets fell drastically from their highs and closed in the red.

In yesterday's blog I did suggest that markets might go higher and in fact I had taken trades on the bullish side. When markets started falling, I closed most of the bullish trades and took some short trades. I am happy that it paid. I did share the mtm screenshot on social media. I was happy that I was able to change the view swiftly. Just some lucky timing.

Nifty fell close to 200 points from its highs and banknifty fell close to 600 points. But it was not a linear fall. There was a recovery as well in between but that did not help much as the recovery was also sold into.

Adani group stocks fell close to 3-5%. I did suggest sometime back that Adani's will fall at the same pace they went higher. Going short now is slightly risky. I closed most of my adani trades in good profits.

If you are trading in stock options, make sure the earning date is after expiry or take trades in stocks which have come out with numbers. The reason is that on earnings day, stock movement can be brutal and its difficult to predict them.

China GDP came at 3%

For the first time the Chinese population is declining. 

Yesterday the US markets were shut. So no handover from the global cues. Look how dependent we are on the US. Its our holiday if US is closed. In the US, they don't even care whether we are open or not.

MY TRADES

  1. Yesterday my algo gave a good profit of around 5%. For the month its sitting in a profit of more than 10%
  2. I still stick to my view that the range is from 18200-17800. If nifty  comes close to 17800, then that might give you an opportunity to enter.
  3. Not initiating any fresh trades. Will wait for the range to break.
INTERNATIONAL MARKETS

  1. US was closed
  2. Today the Asian markets are in the green. SGX is flat
FII AND DII

  1. FII selling reduced yesterday. From selling in thousands, yesterday they sold for 750cr and DII bought for 685cr
CRUDE AND $

  • Crude is at $84
  • $ is at Rs 81.6 

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