The first trade has played out. Now we need to see if there is more recovery or second dip. The morning low is now line in sand.

Simple rule of market: In near-term, follow what FIIs are doing and in medium term, follow what DIIs are doing. Nobody will tell you this rule. But it's something I have always respected and seen its worked out every time.

Let's do an Insta Live today evening.

Follow me on Insta for that

Avoid temptation of overtrading on days like today. If you got the first big one, stay out for rest of the day, no matter what the temptation is.

This is what I was referring to.

Sorry about insta live. Some technixal issue at my end.

Good morning

Good morning

TRADE SETUP
Indian market best performing mkt globally
The basic texture of market remains “Buy on dips”
20 DEMA of 17,445 remains line in sand on closing basis
US market closed tomorrow, may help in last hour
Bank Nifty remains stronger index, IT relatively weak
FII data indicates massive shorting in Index
Index futures: FIIs unwind 10,000 longs, add 14,000 shorts
FIIs now net short by 85,000 contracts, shorts at 81%
If shorts don’t get follow through, expect big covering
“Buy on dips” is negated if Nifty closes below 17,180

The setup has played out again. "Buy on dips" and consolidations

Sorry forgot to put the setup today

OUTPERFORMANCE OR DECOUPLING?
Since Jackson Hole: Nifty up 0.8%, Dow down 4.8%
This year: Nifty up 1.8%, Dow Jones down 14%
Dollar Index again retreats a bit from 110
((SGX Nifty))

TRADE SETUP
Market has momentum, bulls in control
The data point to watch is FII action in F&O
Index futures: FIIs cut short bet by 12,600 contracts
Index futures: FIIs still short by 72,000 contracts
FII short positioning at 77% right now
Price action has confirmed 20 DEMA of 17,460 as base
Bank Nifty at the cusp of a major breakout
A close above 40,000 on Bank Nifty will confirm major breakout
Midcap and Small Cap action getting a bit exuberant

Good morning. While I will post a setup soon, anecdotally shorting after a 200 point gap down doesn't make sense. I have seen that on such days buying with SGX Nifty low as stop loss works.

GLOBAL RISK OFF
Bond market rout catches up with equities
US 10 year yield up 0.16% to 3.353%
Strong US ISM data all but confirms 75 bps hike
Dollar Index finally breaches the 110 wall
Brent crude’s collapse may soothe blow for India
((SGX Nifty))

TRADE SETUP
Indian market has been ignoring global risk off
At some point, market will have to align with globe
Indian market may fall less than Globe as it has done earlier
On Nifty, 20 DEMA of 17,475 has been well respected
Only a close below 17,475 negates the near-term texture
FIIs continue to buy in cash but hedge via futures
Index futures: FIIs add 11,000 net shorts, now at 81% shorts
For medium term, the battle is about 17,200 and 17,800
Close below 17,200 or above 17,800 to decide next major move
Domestic facing stocks may continue to outperform

This worked again. Respect price action always. Now let's see if there is a second dip or not