Trade setup for 14th March

 Now there are more banks that are showing their true colors. The major question is how the FED and the US government will bail out. Biden has told that the money in the banks are safe. This has caused fear in the market. Biden told that tax payers will not be penalized for the bank's loss.

Yesterday India vix shot up 30%. Nifty fell almost 350 points intraday. Banknifty fell close to 1000 points. Adani group stock was in the green for most of the day. Then in the last hour, even they turned to red. 

Now we need to see how the US markets behave. Other markets will follow them. Dow jones closed in the red for 5 days. Now the RSI of dow s at 30. Will there be a bounce from here?? Historically, there has been a bounce wen the RSI went below 30.

However, nasdaq closed in the green. 

Cryptos gained significantly. Most of them gained more than 10%.

If dow has to bounce then this is the region. If it falls further then the pan can be more brutal.

The European markets closed in red.

Now all eyes on the FED as to what they will do with the interest rates after this banking saga.

Usually, if the markets fall significantly before an event then there won't be much fall after the event as most of it would have been factored. I don't think this time will be an exception. Frankly, we are in the sideways market where the range is slightly huge.  

India's CPI numbers were out and it is higher than what the RBI expected. Now if FED hikes rate then we will hike rate. If FED does not then we may also delay the hike.

Coming to technicals, all the support has been broken yesterday. I thought some bounce might come near 200 DMA. But markets were brutal and has broken all support regions.



There is a clear channel which is formed. You can see that the major support areas are taken out.

MY TRADES

  1. My algo worked perfectly yesterday in catching the trend. It made a profit of almost 8%. For the month of March, we are sitting in a decent profit of almost 9%.
  2. But, my positional trades are in deep trouble. I did not expect such a brutal fall. 
  3. I will not be initiating fresh trades. I will need the capital for adjustments.
  4. For people who want to take fresh trade can initiate. Whenever I give a strategy and don't follow it, it mostly wins.
    1. +1 X 17000pe
    2. -3 X 16800pe
    3. -3 X 16500pe in monthly expiry.
INTERNATIONAL MARKETS
  1. US s beaten from 5 days. Dow was very volatile. Yesterday, it even shot up 200 points and then closed n the red.
  2. Europe closed in the red. It lost more than 1-2%
  3. Today the Asian markets are n the red. SGX is suggesting a +ve start.
  4. US futures are in the green.
CRUDE AND $
  1. Crude is a falling. Gold and other precious metals are rising
  2. $ is close to 82.5
FII AND DII
  1. When nifty falls 350 points then its obvious that FII have sold.
  2. FII sold for 1500+cr and DII bought for 1400+cr

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