Trade setup for 21st March

 Yesterday there was a brutal fall in the market and there was a good recovery as well. There was a wonderful recovery in the banknifty in the second half. Nifty fell to almost 16800 and recovered to 17000. 

Not only our market. The major recovery came because the dow futures which had fallen a lot recovered. Yesterday Dow had a relief rally. So does this mean that the worst is over?

I feel the worst is over. Again it depends on the FED outcome. Fed has a history of supporting the market. So tomorrow even if there is a small good news then there will be a decent short covering. 

Suddenly, there is a list of good news coming on the way. 

Putin and Xi meet and it looks like China has taken the lead to convince Russia to stop the war. If this happens then that will be a good news for the world.

JP morgan will be advising the Republic bank with more options with the remaining cash they have. 

The European markets recovered as the Credit Suisse issue got a conclusion. I have told you before also that markets don't worry about bad news or good news. They worry more when things are not clear which is the reason for the volatility. 

Now we need to see if FED will hike the rate or will it pause?

The corporates are supporting the market by laying off people. Amazon will be firing 9000 people. Look where we got. Now, firing people is good news for the market and the organization. 

Nifty is somewhat hovering around 17k. Its a make or break region. I personally feel that the worst seems to be over. There may not be too much pain from here. Maybe I am biased because I am having long positions. I try my level best to think from a neutral POV, but definitely, our trades will have some influence on our thinking. Let's see.

Japan's PM met Modi in India and it looks like they have inked some major strategic deals.


  1. The algo trades worked well yesterday after giving consecutive losses. It was able to make a profit of around 1.5%
  2. There are a lot of shares which are at its support level and attractive to buy. Reliance at 2200, TCS at 3100. I have sold PE in all these and will be taking delivery if it falls further.
  3. In the weekly expiry, I will be selling 16900pe aggressively. I will close it if markets go below 17k again. To make use of the margin benefit, I may sell 17400ce just to get some extra premium.
  1. US markets had a relief rally. Dow gained almost 400 points. Credit suisee fell 52% and first republic bank lost almost 50%.
  2. Europe ganed and closed in the green.
  3. Today the Asian markets are all higher. SGX is higher by 70 points.
  1. FII sold for 2500+cr and DII bought for 2800+cr
  1. USDINR would have craked if this was a banking crisis. Its not even crossed 83. So I am confident of the recovery. But FED event can turn everything.
  2. Crude at $73