Market Trade Setup 16th August #Nifty

Markets and News

The second half of the week starts after a holiday right in-between the week and what a first half it was. Turkish Lira was the villain of the week and it took the whole world by storm sending every currency other than dollar on a tail-spin. The equity markets also reacted very badly and the trend continues today too. Dow Jones closed in red lost more than 130 points and Asia opened in deep red today with Hong Kong down more than 400 points at the open and just in 90 minutes after open it has seen a dramatic recovery and it is in green now. So, we really cant say whether markets will be in red or green today. Almost all of Asia is now flat after that dramatic recovery in last 90 minutes.

Domestic Cues

On the domestics, Rupee was the news of the day on Tuesday as it slid past 70 per dollar but as many would put it, and looks like in the near term the Rupee is expected to decline further and we might see a 71 on the rupee very soon probably by early next week or in this month. Rupee however recovered later in the day on Tuesday but the trade deficit numbers that came in does not paint a good picture. The good news however is coming from the Brent Crude front where the Crude slipped to 71.2 dollars now and we are now seeing a 71 dollar brent and a dollar at 70 rupees.

Talking about the trade deficit numbers that came on Tuesday evening, showed that trade deficit is at a 62 month high, the highest since Modi govt took over, came at 18 billion dollars for July compared to 16.6 billion in June. Exports contracted to 25.77 billion dollars from 27.70 billion dollars and that is the big worry. Imports also fell to 43.8 billion from 44.3 billion in June. Oil imports are at 12.3 billion while Gold stood close to 3 billion dollars. This is really not a great news for the Rupee and the fiscal deficit is already at 3% of the GDP now. How markets take this, needs to be seen.

Derivatives Action

On the derivatives front, Friday saw the premium on Nifty futures surging to 28 points on the back of green Nifty. However there is some caution wih FIIs reducing their long positions in futures to 54% from 55%. Options market also has seen some demand for puts, especially long puts and the Nifty put call ratio surged to 1.70 from 1.66. 11400 put continues to be active with 7.2 lakh positions created followed by 11500 put that added 3.4 lakh positions and 11300 put has 3.2 lakh positions. On the call side 11600 call added 3 lakh positions and 11700 call added 2.6 lakh positions and 11800 call added 1.3 lakh positions.

What is the Nifty call for the day?

A volatile Asia means we could open maybe bit gap down at 11400 levels and what happens from there needs to be seen. 11320 is the ultimate support that can come for any fall and 11420-11450 is a strong resistance. I would advice you to go short at the beginning for any value between 11380-11410 levels with 11330-11350 as the possible target. But if Nifty goes to 11420 quickly and doesnt fall, wait for 11420 to be broken before going short. These positions are not just intra-day and depending on situations can be carried forward to tomorrow also.

Bhagavadgita Chapter 10 Vibhuti Vistara Yoga Verse 30

Chapter 10 Vibhuti Vistara Yoga Verse 30

Brihatsaama tathaa saamnaam gaayatree cchandasaamaham;

Maasaanaam maargasheersho’hamritoonaam kusumaakarah.


Among the hymns also I am the Brihatsaman; among metres Gayatri am I;

among the months I am Margasirsa; among seasons I am the flowery season.


After comparing Himself with different abstract things, Lord Krishna in this shloka compares Himself to nature, seasons and different hymns. He starts off by comparing Himself to hymns and there He compares Himself to Brihatsaama. Metres are the hymns that go in a rhythmic way and amongst them Lord compares Himself to the holiest of all, Gayatri hymn. Then He compares Himself to Margasira month amongst the twelve months in a year and finally amongst the different seasons He compares Himself to the season of flowers.

Extending Interpretation to Mankind’s Life!

Today am going to introduce you to a concept in which the word is split into multiple forms to derive meanings out of it. Every language has words when joined together has a different meaning and when we separate them has a different meaning. Let me take an English word to explain this. All of you have heard of this word “Tomorrow”. Tomorrow came from Today’s morrow. Morrow in english means the day after. So, today’s day after will be tomorrow and the meaning of the word morrow means day after. There are innumerable words like that in Sanskrit and Lord compares Himself to Brihatsaman which is a hymn that forms the essence of Sama veda, which Lord compares Himself previously also.

Lord also compares Himself to Gayatri amongst the meters. Meter is a syllable sequence in which the syllables are arranged, repeated and recited. When they are repeated in a pattern it forms a hymn that gives a rhythm. Gayatri mantra is the mantra from Rig veda sung in the praise of Sun God and is considered to be the holiest. As this mantra is composed in the vedic meter of Gayatri, it is called as the Gayatri mantra. This mantra has 24 syllables appearing in 3 verses of 8 syllables each and they are mapped in 6 each repeating 4 times.

Many of us do not know that during the vedic times, Margasiram was considered to be the first month of the calander year. Later it was changed to Chaitram. Margasiram comes during the transition time of sun moving from vrischika rasi to dhanur rashi and this is also called as dhanur masam. People who worship Lord Vishnu for them dhanur masam is very auspicious and the ekadashi or the 11th day of this margasira masam which comes in dhanur rashi is celebrated as “Vaikuntha Ekadashi”. Fasting on this day is equivalent to fasting on all 23 ekadashi days and is considered to be very auspicious by the followers of Vishnu. Lord compares Himself to that holiest month of Margasiram. And finally lord also compares himself to the best season of the year ie spring, where flowers bloom and make everything look colourful.