Market Trade Setup 23rd August #Nifty

Markets and News

The second half of the week starts after a break yesterday. Two just left in this week and we are into the expiry week finally. Things look different now from what they were when we went for a break. Dow Jones has lost nearly 90 points in yesterday’s trade and the big news is Brent Crude. The US inventory data shows a significant drop in its inventory and that has pushed up the demand for Crude and Brent Crude is now racing towards 75 dollars. Asia is showing some green and that might work well for India.

Coming to domestics, there is a lot of micro-news affecting specific companies rather than a sector getting affected. Most prominent of them is the Nestle breaking its business into 15 clusters and that would mean India will emerge as a separate conglomerate and that would mean more autonomy for Nestle India to do its business locally. HDFC AMC which saw listing recently declared its Q1 which saw a 21% jump in the revenues and that justifies the premium that the stock got. In the snack market, Pratap snacks acquire 80% stake in Avadh snack of Gujarat and that will further expand the footprint of Pratap snack in Western India market. 

On the derivatives front, there were equal amounts of long and short positions taken on Tuesday and Nifty long positions is stuck at 51% and it looks like a 50-50 market from here when it comes to longs and shorts in Futures. Options market however saw some demand coming back to calls in the morning when Market corrected a bit and as a result the Nifty put call ration corrected to 1.70 from 1.73 seen at the beginning of the day. 11500 put added 6.6 lakh contracts while 11600 put added 2.7 lakh contracts and even 11700 put started adding open interest where 1 lakh positions got built.

But many positions saw a drop in open interest and 11300 put saw 4.2 lakh positions closing followed by 11200 put that saw 3.4 lakh contracts getting closed. 11100 put saw 1.1 lakh contracts and 11350 put saw 1.5 lakh contracts getting closed. On the call side 11800 call saw some action with 1.5 lakh contracts getting created and 11750 call got 1.1 lakh contracts. 11600 call and 11400 put still continue to have maximum accumulated open interest and that means 11650 to 11380 is the levels that Nifty will try to negotiate during this week. 

What is the Nifty call for the day?

A mild to green Asia means we will open close to 11600 and that will be another all time high. Mind you, Nifty has the legs to go upto 11650 and dont be surprised if it goes to 11650-11680 range. On the support side, 11550-11570 will be  a support zone. Also understand that 11380 is the floor for the series so any adverse news on crude can take the market on downside to 11500 levels. So, expect some volatility. This is the time to shift to options now and a short straddle is what I suggest you to take. When to take is something I will be telling you during the course of the day.

Chapter 11 Vishwaroopa Darshana Yoga Verse 3

Chapter 11 Vishwaroopa Darshana Yoga Verse 3

Pashya me paartha roopaani shatasho’tha sahasrashah;
Naanaavidhaani divyaani naanaavarnaakriteeni cha.

The Blessed Lord said:
Behold, O Arjuna, My forms by the hundreds and thousands,
of different sorts, divine and of various colors and shapes!

Interpretation

Lord Krishna in this shloka starts to reply to the request of Arjuna, where he requests to show the Lord’s cosmic form. He starts His statement by telling Arjuna to hold himself tight because the forms of the Lord are in many hundreds and thousands which are impossible for a man to see and visualize. He then goes on to tell that His cosmic form is of different sorts and extremely divine. Finally, He also tells Arjuna that His cosmic colors are something that comes in various colors and various shapes and it takes total attention of Arjuna to adjust Himself to His cosmic form.

Extending Interpretation to Mankind’s Life!

This is one of the first and basic forms of information we are getting about the Vishwaroopam of Lord Vishnu. Here am mentioning Lord Vishnu because the form is of His. Lord Krishna is just an avataara. For a person of this generation, who didn’t watch Mahabharat on Television, the imagination of the cosmic form of God is something that was described in the interpretation. The basic thing that one needs to understand here is it is impossible to see the Lord in His true cosmic form as it never exists in a singular way.
For you to imagine, let me put it this way. It is something that you see in thousands of forms all surrounding you, there is no limit to which Lord’s form can end. It just keeps continuing as far as your eyesight goes. It also just doesn’t appear in one sort but you can see that in different sorts and some of the sorts are beyond your imagination. God is beyond shape, as every shape is a creation of God and as a result, in His true cosmic form you can see him in different shapes and colors. These are the colors which are visible to you and even the colors which you can never see. Such is the divine cosmic form of the Lord.