Trade setup for 2nd Feb

 Yesterday was a huge volatile day. Markets were at all places. But the closing was a flat one. Next year, people will say that last year on budget day nifty was down only 0.25%. But we know what all happened this year. Usually, after the budget speech, the markets will usually find the direction and continue with minor pullbacks. Yesterday, after the fantastic budget, markets went higher then fell almost 600 points from its highs and then rallied 350 points from its low. 

Look at ITC. Whenever taxes are hiked on cigretts, it falls and if nothing is done to cigarette tax then it rallies. I think this is the first time I am seeing that it rallied after hiking the tax. But that was not the story. When Tax was hiked, it fell 3-4%. Then it rallied and went to +3%. 

The main player in yesterday was Adani Adani and Adani. It fell close to 35% in a single trade. After the markets, Adani told that the FPO is taken off and they will give money back to investors. There is a forbes article that Adani only funded it FPO. God alone knows what is happening here. 

Now there is a lot of pledge of Adani shares in the bank and with the fall of 30%, if more shares are not given then Banks will start selling them in the markets which will intensify the selling and reduce the price further. Similar with ACC, Ambuja, Adani ports etc. 

Some banks have told that there is no top up required for ACC and Ambuja. But now you never know who is telling the truth and who is lying. Better stay away from this counter. 

I had sold 2250pe in Adani ent. Now it is ITM. I have not done any correction action. For now it is in a loss of 70000. I will take a call after the dust settles, probably in the second half of the series.

So from the Budget, it is clear that slowly we are making to move to the new tax regime. Slowly, the tax benefits saving will be reduced thereby the govt wants you to spend and not save more.

The big casualty of the budget was the insurance sector.

The US fed hiked the interest by 25bps. This was expected. The US markets were not volatile compared to ours.

Meta is up 20% after markets yesterday when they came out with numbers and they have a buyback as well.


  1. I will not be running the algo today as well as the volatility is too much. From tomorrow, I will start with the fresh expiry.
  2. I was sitting with a decent profit. Yesterday, after the budget when the markets were rallying higher, I moved some of the strikes closer to the spot. Then the markets collapsed. I had to run for cover and close some of them in loss. Even today, some are in danger zone. Will have to be cautious this expiry.
  3. Will initiate fresh trades tomo.
  1. US markets closed in the green. Dow was flat but nasdaq gained 2%.
  2. Europe were mixed
  3. Today the Asian markets are flat. SGX down by 150 points
  1. FII bought for 1700+cr and DII bought for 500+cr