Trade setup for 6th Jan

 Sorry for not coming out with a blog for some time as I was busy in updating the algo. 

Coming to markets, We have closed below 18k marginally. There seems to be some support at 18k. 

The range for nifty is 18300-17900. If this range is taken out, the rally might continue in the same direction.

The US markets fell yesterday after the good jobs data came. Good jobs data means that the economy is good and inflation will rise further and the FED will hike rates.

Now the banknifty is falling. It was expected as it had a continuous rally from oct. So a pullback was expected. Banknifty should fall further by at least another 1000 points. I will go long on banknifty once it crosses 43500. Till then it's a sell on the rise for me.

Yesterday's stock of the day was bajajfinance. They came out with their report where their growth did not come with expectation. So it fell close to 7%.

Amazon had earlier told that they will lay off 10k employees. Now they told they will fire 18k. Salesforce told it will lay off 10% of its workforce. So if you are in a job, make sure you don't jump now. The environment is not safe to goto a new place.

You can see HDFC, which is in a tight range from nov 14. 

You can see that there is a big candle at the beginning and then it is in a range. This is a consolidation phase. Usually, there is a breakout after the consolidation phase means the stock will break the upper range and go higher. But now the markets are weak and there is fear of recession, so I am expecting the market to break the lower range. Dont jump and short it. Wait for the price to go below or above the range. Trading in options is also risky as the liquidity is very low. I will do a video on this trade explaining the logic when I take it.

My Trades

  1. Yesterday my algo was able to close in the profit. For the month it is still in a minor loss.
  2. I will be taking the trade in hdfc if the range is broken
  3. In bajajfin, I will be taking the below trade
    1. -1 X 6000pe
    2. -1 X 6000ce
  4. For this week, I will take the below trade
    1. +1 X 18000ce
    2. -3 X 18300ce
    3. -3 X 18400ce
    4. -3 X 18500ce
  1. The US markets close in the red after good US job data. Dow lost 400 points and closed the day by losing 300 points. Nasdaq fell 1.5%. Telsa is again below $110. I fell that it will come till $100 and from there it might bounce. The same happened with meta as well. It came to 100 and from there it is now close to 125
  2. Europe closed in the red.
  3. Today the Asian markets are in the flat zone.Even sgx is flat.
  1. Crude below $80
  2. $ at Rs 82.5
  1. Yesterday both FII AND DII sold. FII sold for almost 1900cr and DII sold for 200cr. Still nifty managed to rally from the lows.