Trade setup for 6th April

 Now all the bad news have become good news. There is no one talking about covid, bankning crisis, inflation, Russia- ukraine war. I am still looking for people who told that the bankning crisis will escalate and there will be another 2008 and nifty will be back to 13k. 

Now nifty has closed in the green for the 4 days and bankning stocks have led the rally. I told you that when the entire sector falls, then its a golden opportunity to enter that as when the recovery comes, this sector will lead the recovery.

The same thing is happening with IT as well. 

Yesterday, nifty closed above the 200dma and 50dma. 

Nifty closed above 17500 and banknifty is at 41000. All the 17500 CE writers had to run for cover. 

Since there was a huge rally from last 3-4 days, today being expiry there can be a small pull back. We are also going to a long weekend. So there might be some profit booking.

Today is expiry and also an event day. Today we have the RBI policy and its expected to hike rate by 25bps. All depends on the RBI stance and commentary. 

Taiwan leaders met the US leaders and China is not liking that. We need to see if this escalates. For now, it does not seem like escalation, so ther is nothing to be scared of.

India vix is ultralow. Its close to 12. This is the time where you dont initiate fresh option selling strategies as the risk is higher. Now, its better you take some long term strategy or make sure there is a balance of some buy legs so that when the vix shoots up, you are not impacted. Vix will shoot if markets fall(usually). For now, there is no reason for the markets to fall unless something comes out of surprice. 


  1. Yesterday, the algo closed in the green. I gained more than 2% profit.
  2. For this weekly expiry, I had sold 17500 CE in small quantity. Today I need to see if that goes to 0 or will I have to close in the loss. I will not be doing any adjustment as the volume is small. If I am not comfortable, then I will close it.
  1. Yesterday there was a selloff in the techs in the US. Nasdaq closed in the red but dow closed in the green.
  2. Europe closed in the red.
  3. Today the Asian markets are in the flat zone. We will move according to the policy.
  1. FII have now started buying. They bought for 800+cr and DII sold for 900+cr
  1. Crude at $84
  2. USDINR at Rs 82