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Pre - Market Analysis (12th May 2022)

U.S Markets closed lower yesterday. When we were trading Dow was up 300 points  All these gains have been given up during trading hours in U.S. Asian markets are lower. SGX nifty is below 16k. Right now Dow futures are flat. Yesterday Nifty for a moment broke 16k. In the final hour we witnessed relatively strong short covering rally. Yesterday we had the U.S Inflation numbers and they were higher than expected . 8.1% was expected but it came in at 8.3%. Because of this U.S Market cracked yesterday as well. 16000 PE has the highest open interest both in weekly as well as monthly so these Put writers should face trouble today. Every minor bounce is being sold into  Mid and small caps have been butchured and this is just the beginning. This is the beginning of a bear Market and these stocks will be taken to cleaners. Portfolios have been taking s big hit in recent times. Momentum is strong towards downside and any minor bounce is being sold into. The hope was U.S Inflation num
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Pre - Market Analysis (11th May 2022)

U.S Markets closed flat yesterday. When we were trading Dow was up 250 points. All these gains have been given up during trading hours in U.S. Asian markets are higher right now. Dow futures are also higher. SGX nifty is down 50-60 points. Yesterday Market showed remarkable resilience throughout the day  We at one point of time Even hit 16400. Then the last hour selling again was disturbing. Today is a very important day in U.S markets. Today we will be having the Inflation data from U.S Market Positioning is nothing new and similar as always. Markets seem to have already discounted the worst. Any positive surprise could trigger a short term rally. Markets are so oversold all over the world. It's not the right time to create shorts. Look for pull backs and short covering Rallies from here on. Last 2 days fall has been mostly due to Reliance. Once Reliance stabilizes and bottoms out then the downside will be limited. Hdfc bank ADR was up 5% yesterday. Yesterday Bank Nift

Pre - Market Analysis (10th May 2022)

U.S Markets crashed Yesterday. All 3 indices hit fresh 52 week lows. Nasdaq is the major contributor on the downside and fell more than 4%. Asian markets are lower. SGX nifty is down 100 points. Well I can remember few months ago people asking me how to invest in U.S stocks. Many people from India have already invested huge chunk in U.S Markets. Especially in Nasdaq as it was in a crazy bull run. Many investors from other countries have also invested in Nasdaq. Now because of this huge underperformance all of these are suffering to the core. So Nasdaq falling is not only U.S Specific problem it's a global problem now. Tomorrow we will be having inflation data in U.S and in all the other countries Inflation data has surprised on the upside. So there are fears of recession and highest Inflation ever in the Economy once again. Let me tell you , U.S is a Bluechip Diamond Country. They have come out of Many shocks in the past Specially 2008 Lehman brothers collapse. Nobody e

Pre - Market Analysis (9th May 2022)

U.S Markets closed lower on Friday. Asian markets are lower. SGX nifty is down 200 points. So there is a huge gap down in store. Every day we are opening with big gap down in the month of May. U.S markets are finding some support near 52 week lows. How long will this sustain we have to see. Yesterday night all the crypto currencies fell at least 5%. So it gave a clue that Dow futures could be negative. But it would be down more than 1% nobody expected. It's more likely that we would be heading to our 52 week lows as well  16000 PE has the open interest in monthly options as well as weekly. These are also in trouble right now because of such huge gap downs  At each and every level there is large call writing now. All Call options above 16500 have huge open interest in monthly. FII's long position stands only at 22% and shorts at 78%. I haven't seen such bearish positioning by FII since Covid 2020. Just imagine if they cover 78% shorts itself this could lead Marke

Pre - Market Analysis (6th May 2022)

U.S Markets closed lower yesterday. Asian markets are lower. SGX nifty is down 200 points. So there is a huge gap down in store. Yesterday we opened with a huge gap up had a bit of short covering as well. Markets went close to 17k but as soon as this happened huge selling again started. Nifty just closed flat after trading 300 points higher at one point of time. This fall is majorly due to Inflation and rising Interest rates. Yesterday , Bank of England raised the rates by 25 basis points. U.S is set to report highest inflation numbers in coming quarter as well. Plus , there have been reports of U.S entering recession post this event. All this panic has led to a collapse in the Market. The Volatility currently is unbelievable. Yesterday Nifty touched almost 17k and today it's showing 16400. So a 600 point swing in 1 day is impossible to handle. Yesterday majority of people lost huge sum of money in expiry trading. I had stopped expiry trading long ago because of this Vo

Pre- Market Analysis (5th May 2022)

U.S Markets closed higher yesterday. Asian markets are higher. SGX nifty is up 150 points. Yesterday was a very tricky and unexpected session. As soon as Market opened there was a continuous selling. Market was falling left , right and center without taking any support. I was wondering why is the Market going against the global cues Then we got the news about RBI Governer press conference. So some informed people already knew about this rate hike. Hence there was a sudden selling in the markets. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points. Repo rate is the rate at which banks borrow money from RBI. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier. This slows down the growth and liquidity in the Market temporarily. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI. RBI uses that money without having to pay any interest on it. Increasing CRR means RBI is

Pre - Market Analysis (4th May 2022)

U.S Markets closed higher in the last 2 trading sessions. On Monday night U.S Markets went closer to 52 week lows and there was a sharp recovery  Dow recovered 500 points in the last hour of trade. Yesterday as well the momentum did continue. Asian markets are higher. SGX nifty is flat. Today is the most awaited decision day. U.S fed rate hike. I sense it's already priced in into the markets. Risk - reward favours going long now. I sense all the global markets and we have made a short term bottom Nifty bottom should be at 16800. Keeping this as stoploss and can go long. There could easily be a 3-5% rally in Global markets after rate hike news. 50 basis points in the expected rate hike today. I don't see there would be any sort of disappointments. HDFC Bank and hdfc Ltd are showing good resiliency. Hdfc has posted very good numbers and these 2 stocks have finally stopped falling. The sentiment is very negative and everyone looks bearish. Everyone talking Nifty going