Trade setup for 11th May

 For now it looks like the markets are poised to go higher. Again, nifty closed above 18300. Lets see if there is a follow through. Yesterday, markets were volatile. Nifty went to red, then recovered, fell again and finally managed to close in the green.

Banknifty looked weak in the morning but by evening even that rallied and closed in the green.

It was volatile because there was US CPI data which was pending. 

The US CPI data came and the inflation seems to have cooled and was better than expected. This came before the US markets opened. There was a drama even in the US markets. The US markets gapped up, then it fell drastically. It then recovered and closed in the flat zone. The US markets fell fearing that the recession might happen.

Exit polls numbers came for Karnataka elections and it looks like JDS will be the kingmaker. Some are giving clear majority to congress. BJP might lose another state. Will this impact the stability of the country's politics?? If that's how the market reads then there can be a fall in the market. If this is what the markets expected then there could be a rally. I feel that markets may fall slightly as incumbent BJP loses 1 state. 

As I told, markets may range between 18500-18k for this month. Wait for Monday. You may get a clear picture after the numbers are out.

Today is expiry and nifty may range from 18400-18200. My margins are all used up. I may have some money left which I will sell some 5-10rs strangles.

Yesterday the tech in the US showed some recovery. We simply copy US right. So, for now it looks like IT has formed some kind of a bottom. I will still wait for Monday to take any fresh trade.


  1. For today's expiry, I have sold huge quantity of 18500ce. I will be closing that and moving them closer and converting that to strangles.
  2. For may expiry, I have expected the below trade
    1. +1 X 18500ce
    2. -5 X 18700ce
  1. US after all drame closed flat. Dow was flat, but nasdaq gained more than a percent.
  2. Europe closed in the green
  3. Today the Asian markets are flat to negative. SGX is up by 40 points.
  1. Crude is at $77
  2. USDINR at Rs 82
  1. FII are buying left right and center. Yesterdya they bought for 1800+cr and DII sold for 800cr