Trade setup for 9th May

 On Friday, nifty fell 200 points after a big rally which was there for many days. All including me expected some more fall. But that was not the case yesterday. The entire Friday fall recovered yesterday. Banknifty however did not recover entirely. But it recovered more than 50% of the Friday's fall. So now its clear that markets are poised to go higher. Banknifty is 2% away from ATH. Nifty should rally almost 600 points to goto ATH.

Now all eyes are on US CPI data. The markets are expecting the inflation to cool in the US. 

For now there is no reason why markets should fall. Crude is falling and USDINR is below 82. 

The nifty and banknifty are at 2.5% from its 20 DMA. There is still room for nifty and banknifty to rally higher. I wont be surprised if 18500 is taken out this month. 

Institutional buying is happing at a huge scale. So the chance of markets falling now is low.

RSI of nifty and banknifty was above 70 till last week. The fall and rise in the last 2 days has reduced the RSI which means that the markets are looking to go higher. People should close their shorts if they have any. This is definitely not the right time to short. Yesterday, I closed some of my short which I had taken on Friday in a minor loss as it was not worth.

One can sell 18k and below PE if 18300 is taken out on a closing basis.

I expected markets to remain in the range of 18-18500 for this month. But seeing yesterday's rally, it looks like 18500 can be taken out easily.

Mankind pharam will be listing today. It looks like it might open in green. I had applied 3 application but I did not get any. So it will definitely open in green.

The startup heat is going down day by day. Byju, zomato, ola are in deep loss still. It does not look like their troubles are ending anytime soon.  Paytm and nykaa have turned profitable. Swiggy valuation has been reduced by invesco. We need to see if the FED makes money to be availed cheaply for these companies to turn profitable.

Lithium reserves found in Rajasthan. It looks like there is more Lithim on this planet than we expected. The reserve is Rajasthan is more than than found in Kashmir.

People are getting calls on whatsspp where they are scamming people by promising jobs. So be careful.


  1. I had sold 18500ce on Friday. I closed some of them in loss yesterday as there was a huge gapup which I did not expect.
  2. I have sold huge quantities of 17900 pe to counter the above loss. I will move that to 18k if 18300 is taken out on closing basis.
  3. Today if markets closes in green, then one can sell 18500ce for the week. I will be doing this as the margin needed will be less as I have sold pe

  1. US markets were flat yesterday.
  2.  Today the Asian markets are also flat.
  3. SGX is down by 20 points.

  1. Crude around $75
  2. USDINR at Rs 81.8

  1. FII bought for 2000+cr and DII bought for 250cr