Market Trade Setup 13th August #Nifty

Markets and News

Start of the 3rd week and we are all waking up to a huge currency crisis in Turkey. The Turkish Lira fell by 18% on Friday, the largest single day fall in last 17 years and in this year it fell almost 40%. This is mostly to do with how Turkish govt runs its central bank. There is a lot of Govt intervention in the monetary policy formation and when inflation hit 15% still Govt wanted to control currencies. This is disheartening to the currencies across the World. Dow Jones closed almost 200 points down and the entire Asia today is down with every market losing more than 1.5%. Hong Kong is down more than 450 points now.

Domestic Cues

On domestic market front, India might not get affected by Turkish Lira issues, as the India exposure to that country is very less. We have our own fundamentals to react to and we have the June IIP data coming at 7% vs expectation of 6.1%. It looks as a fantastic number, but the point to be considered is this is coming on a low base of -0.3% seen in June 2017. So, that takes away some excitement. Manufacturing has seen a growth of 6.9% and capital goods saw a growth of 9.6% and consumer durables saw a growth of 13.1% again on a low base of -3.1%. How much market takes note of it needs to be seen now. Q1 results are almost over now and we all wait the CPI inflation numbers.

Derivatives Action

On the derivatives front, there has been a significant drop in the Nifty futures premium from 26 points seen on Thursday to just 9 points by the end of Friday. This is a big fall and this is on the back of some active selling happening in the futures market. The overall long positions is at 56% and in the options market also the calls were more in demand than puts and the put call ratio reduced to 1.75 from 1.80 but still its at higher levels. 11500 call saw the maximum open interest build of 4.5 lakh positions.

What is the Nifty call for the day?

Nifty will open gap down today on the back of Turkish Lira crisis and it will be below 11400 mark. If you by any chance have the short position taken at 11470 you will have a huge profit. See, the Nifty testing 11350 and stabilizing there. 11320 is a very strong support. Observe the Nifty trend today and dont rush into any positions.

Bhagavadgita Chapter 10 Vibhuti Vistara Yoga Verse 27

Chapter 10 Vibhuti Vistara Yoga Verse 27

Pavanah pavataamasmi raamah shastrabhritaamaham;

Jhashaanaam makarashchaasmi srotasaamasmi jaahnavee.


Among the purifiers or the speeders I am the wind; Rama among the warriors am I;

among the fishes I am the shark; among the streams I am the Ganga.


In this shloka Lord Krishna compares Himself to some more entities and the forces of nature after comparing Himself to demons, reckoners, beasts and birds. Here He compares Himself to wind amongst the speeders. In the list of warriors, Lord Krishna compares Himself to Lord Rama, which was His previous avatar. He then goes on to compare Himself to the water-beings ie fishes. There He compares Himself to shark. Then finally He compares Himself to the streams, when He says He is like Ganga, the holiest of all the streams.

Extending Interpretation to Mankind’s Life!

Wind is called as purifier as well as speeder, because there is no comparison to the force of wind and the speed and force of wind can destroy everything around. Wind is also a purifier because, it removes everything that is toxic. It removes every form of foul smell and protects the humanity from deadly diseases. The comparison to Lord Rama is obvious because Lord Rama is considered as the greatest amongst the warriors or Kings. Lord Rama kept Himself behind and kept the other person ahead in every situation, which is unusual to any warrior in those times as well as these days.

You can look at His life, He put the word given by His father ahead of Him and went to forests. Next, He gave a chance to Ravana to reform himself and return Sita and avoid a war, because even as a warrior He understands the destruction that a war can cause. After killing Ravan, He puts the husband in Him behind to subject Sita to Agnipariksha, as He is a King who is accountable to His people and He had to prove the chastity of Sita to the world. And despite all this, when whispers arose on her chastity, Lord Rama put His Raj Dharma ahead of His love for Sita and sent her to forests. In every way, life of warrior Rama is an ideal lesson for everyone who wants to lead a life of ideals.

Lord Krishna finally compares Himself to Shark which is the most stealth fish in the Ocean against whom all the other fishes are scared of. And finally amongst the streams, Lord compares Himself to Holy Ganga. Ganga for millions of years has been the spiritual guide to millions of people. It criss-crosses the holy Uttarakhand and passes through the holiest places like Rishikesh and Hardwar before touching the Kashi, Varnasai and finally Prayag or Allahabad. Many Rishis and munis have attained salvation on the banks of Ganga and many more like me have visited this great river and experienced the holy vibes that it carries.