01Cold open: three days off, tape came in hot
You just got earlier.
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Three days off the screen. Maharashtra Day Friday. Saturday. Sunday. Monday morning live and the tape is hot.
GIFT Nifty plus 92 at 24,239. KOSPI plus 3.93 percent. Taiwan plus 4.02 percent. Brent backed off the Hormuz peak. 121 Thursday. 108 live now.
This is Episode 31 of Season 2. Today is the wing paid recap and the Tuesday pins the range setup.
02Global + commodities: risk on, Brent cooling
Start with the macro tape because that is what gapped while we were off the screen.
Read the rest of chapter 2
US Friday. Nasdaq plus 0.89. S&P 500 plus 0.29. Dow Futures flat. Tech led, risk on into the weekend.
Asia delivered Monday. KOSPI 6858 plus 3.93. Taiwan Weighted 40,489 plus 4.02. Hang Seng 26,184 plus 1.58. Nikkei flat to up on Japan holiday tail. China onshore closed for May Day. Jakarta plus 1.53. Region opened risk on after the three day Western chop.
DAX Thursday plus 1.39 leading. FTSE flat. CAC red. DAX leadership confirms risk on.
Now commodities. Brent live 108.24, up 7 cents on the day but down about 13 dollars from the Thursday intraday peak of 121 to 122. Iran proposed peace talks Friday. That is the cooling catalyst. WTI 101.79. MCX Crude 9652 down 2.18 on Friday.
The Hormuz tail is bleeding off, not extending. EP30 branch trigger was Brent above 125 by Monday EOD. We are 17 dollars below it. Branch trigger unfired.
03Bonds, rupee, crypto: risk on across asset classes
Gold 4594 down 0.38. Very bearish technical. As crude eases, the macro hedge bid eases too.
Read the rest of chapter 3
Dollar Index 98.20 firm. USD INR fix Thursday at 94.91. Intraday print 95.34. The all time low held. Scaffold floor was 95.50. We are below it. Rupee is stable enough.
India 10 year 7.06 percent above the 7 mark. Rate stress is real. US 10 year 4.38. Japan 10 year 2.51. No flight to safety bid.
Bitcoin reclaimed 77,000. Ethereum at 2300. ETF inflows 1.9 billion in April. Risk on across asset classes.
04Pro FII client: pro long synthetic, FII covering, client trapped
Participant data locked from Thursday April 30 close. Pro first because Pro flips first.
Read the rest of chapter 4
Pro index futures plus 1,42,365 long. Structural long. Up from Wednesday plus 94,000. Pro deepened the bull bet despite the Hormuz panic intraday.
Pro index calls plus 92,567. Up from Wednesday plus 66,452. 26,000 fresh long calls Thursday. The Pro reset we called on EP29 went deeper, not lighter.
Pro index puts plus 2,99,119. Hedge intact. Structure is long futures plus long calls plus long puts. Synthetic straddle on directional long. Betting on movement either way while keeping bullish delta.
FII index futures minus 1,71,608. Covering grind continues. Peak short minus 2,88,354 on April 13. About 1,17,000 contracts covered over 13 sessions. Pace dropped from the 87,000 single day record on April 15 to roughly 5000 a day now. Panic phase done. Structural grind active.
April cash. FII minus 70,135 crore sold. DII plus 51,063 crore bought. Net FII index futures plus 3876 crore positive. FIIs sold cash but bought index futures. Rotation, not panic. April 30 daily FII cash minus 8048. DII plus 3487. Heavier sell day on the Hormuz tape but the month total still squares.
Client max bullish getting trapped tighter. Long calls flipped negative 1,36,814. Short calls now. Short puts at minus 7,17,562. Retail still selling vol short the tail.
FII pair ratio. Stock long 8,29,964 versus index short 1,71,608. 4.83 to 1. Index short is portfolio insurance, not a directional bear call. Hedge, not crash.
05Levels + 5 prediction set: 24,000 magnet, 24,200 Wall
Levels for Monday. Floor 23,800. Thursday low. Magnet 24,000. Thursday close 23,997.55. Four points off the level. Walls 24,200 and 24,300.
Read the rest of chapter 5
GIFT plus 92 implies open in the 24,200 zone. We are opening at the ceiling of the pin band, not at the magnet.
Tuesday is Nifty weekly expiry. The 5 May chain implied move is plus or minus 460 points. IV at 15.29. Cheapest front weekly of Season 2.
Five predictions for Monday settle. Locking now. Grade Monday EOD.
One. Nifty settles in the 24,000 to 24,200 zone. Probability 55 percent. Magnet pull is strong.
Two. Floor 23,800 holds. No fresh break.
Three. India VIX stays in the 17 to 20 band. No panic spike above 22.
Four. Pro index calls remain net long. No flip back short.
Five. Brent does not exceed 125 by Monday EOD IST.
Branch trigger. If Brent rips above 125, scrap pin thesis. Fade to 23,700 to 23,800. Scale wings.
06Education: the wing that paid, then expired
This is the trade I want you to remember from EP30.
Read the rest of chapter 6
Thursday a short straddle was sold at the Sensex 77,300 strike for 596.85 total premium. Call plus put combined. With it a long put wing at the 76,800 strike was bought as protection.
Sensex opened 77,254. Sold off to a low of 76,258. Closed 76,913.
At the low the 76,800 PE wing printed 492 points of intrinsic value. The hedge paid.
At the close the wing was 463 points out of the money. It expired worthless.
The straddle writer kept 210 net premium. The naked short straddle writer collects the same 210 on a quiet day. But on this day gets blown out as Sensex ran 490 points against them. The wing did not exist for the naked seller.
Cost of the wing was 35 points. That is the rent on the insurance. Implied vol at 15.52 on Thursday. Deep sell vol regime. In a 25 IV regime the same wing would cost 150 plus. Three to four times the rent.
The lesson is timing. Cheap IV regime is when you load on hedges. Not when you remove them. The wing does not always pay. But when it does, like Thursday, it pays the entire tail. Lets you stay in your structural trade without panicking out at the low.
Hedge when boring, not scared. EP28 lesson. Demonstrated live two sessions later.
EP31 in 8 topics
07Today's plan + sign off: pin trade lives into Tuesday
Bottom line for Monday. Gap up open near 24,200 is the zone. Fade extension above 24,300 to book longs. Buy dips down to 24,000. Floor 23,800 is the no break level.
Read the rest of chapter 7
Tuesday is the expiry. Pin trade lives. Structure is straddle sell on the magnet 24,000. Wing protection on the put side at 23,900 or 24,000. IV is cheap. Wing rent is small.
April closed plus 8 percent. Sell in May is the seasonal frame everyone is reaching for. We test it Tuesday with the chain stacked. If 24,000 holds, the pin holds and May series carries forward. If Brent rips back to 125 you scrap everything.
The market always telegraphs. You just have to know where to look.
Streaming live on rupeecase.com. India's first systematic investing terminal that I am building. RupeeCase rebalance happens today. EP32 Tuesday will cover the new lineup alongside the weekly expiry pin grade.
You just got earlier.
