Skip to main content

Pre - Market Report (25.02.2020)

Pre Market Report:


  1. Over the weekend, Corona Virus affected cases reported in Italy, Iran and South Korea.
  2. That triggered panic selling across the world.
  3. Nifty fell nearly 250 points.
  4. All Nifty 50 stocks ended in Red after more than a decade, if I am not wrong.
  5. India VIX shot up 24%.
  6. Put options shot up but Call options did not fall propertionally.
  7. Bank Nifty Feb 31000CE, which is 600 points away, just 3 more days for expiry, closed around Rs 65. This is huge premium.
  8. When our markets opened yesterday, Dow futures were down by 300 points.
  9. That started falling more and more and at one point it was down 850 points.
  10. So our markets came under severe selling pressure after trading around 11900 for most part of the day.
  11. When Dow opened, it opened around 1000 point lower.
  12. At the lowest point, it was down by 1200 points and then in the last 15 minutes, recovered about 200 points.
  13. S&P 500 fell more than 3% only 3 times in every two years since 1950.
  14. Whenever it fell more than 3%, next day, on an average, it shot up 1.2%.
  15. Right now Dow futures is up by about 3%.
  16. Moreover, no additional bad news came from any country.
  17. Yesterday night SGX Nifty hit a low of 11730.
  18. But now it is trading around 11895.
  19. For most part of the day, Nifty future was trading around 11900 and Bank Nifty future was trading around 30600.
  20. Now markets may open around that level.
  21. FIIs bought for Rs 1500 crores on last Thursday and sold Rs 1100 crore yesterday.
  22. So FII selling is actually not that bad.
  23. Normally this kind of fall, they would have sold Rs 4000 to 5000 crores.
  24. Yesterday panic started from South Korea, now trading in Green.
  25. Right now, South Korea, Hong Kong, Singapore are trading in Green.
  26. Some banking stocks showed resilience like Kotak Bank (Second best performer, after Infy), IndusInd Bank, Yes Bank.
  27. SBI was very firm in the morning, but came under selling pressure later.
  28. SBI Card IPO is near, so there may not be any more selling in SBI.
  29. I expect SBI Card issue to be a huge success and SBI will trade positive in March series as well.
  30. Markets can be highly volatile as we are very close to expiry.
  31. There is huge shorting in F&O by FIIS. There is little premium in next month series.
  32. So there is no incentive to rollover the Shorts.
  33. Both Indices Might find Support at Yesterdays low.

Comments

Popular posts from this blog

Bull Call Spread Options Strategy ( With Practical Example)

I Strongly believe , to be Successful in Stock Markets you Require two things : 1) Edge 2) Hedge Edge means having your own Trading System , following your own consensus & Conviction. Hedge is like an Insurance Policy , it will protect you from losing big and also maximise your earning potential over time without Destruction of your Capital. I will be Sharing one of the Hedging Strategy here. Example : Nifty on Friday (5th June) has closed around 10150. You are Bullish for this Weekly Expiry and what you to do is buy a Call Option of 10200 which is Trading around ₹120. Buying or selling naked Options involves high risk as its equal to betting. If you win you win Big or else you lose Everything. So buying naked Options isnt my Cup of Tea. What will I do in this Scenario? I would buy a 10200 CE (11th June Expiry ) at ₹120 and would sell a 10300 CE (11th June Expiry) at ₹80 to manage my risk. Now there are 3 Situations which can happen : 1) Nifty continues to rise: The 102

Pre - Budget Analysis (1st Feb 2022)

U.S Markets closed higher yesterday. Most importantly , S&P 500 VIX crashed 10%. There was huge Volatility in global markets due to Fed event. Markets remain volatile only when they have topped out or have bottomed out. Right now I feel we have bottomed out at 16850. Asian markets are slightly lower now. Dow futures are lower. SGX Nifty is at 17500. Finally , the most awaited day has come. Budget 2022 is going to be presented today. Expectations are of a good and stable budget. Reasons are the Elections coming up and LIC IPO in March. Govt very well knows if LIC IPO has to go through , Market sentiment has to be good. Without good market spending it would be very difficult for IPO to go through. Market had already fallen a lot before the budget. Although we have rallied in last 2 days but still we have some upside left. Though I feel it's not favourable to chase today's gap up. Today's gap up is a good opportunity to book profits those who carried longs. Bud

Pre - Market Analysis (17th Feb 2022)

U.S Markets closed flat yesterday. Right now Dow futures are slightly lower. Asian markets are slightly higher. SGX Nifty is near 17380. Suggesting a flat start for the day. Yesterday was a heavy Volatile session. Markets have moved all over the place yesterday. At one point of time Nifty rallied and at one point of time we were ready to cross 17500. Then news of Russia came that Russia has not fully taken back their military troops. This led to a drastic fall in the last 2 hours. Nifty crashed all the way to 17300. India VIX came to positive. U.S Markets at one point of time were down quite significantly yesterday. But later during the day they have recovered most of their losses. Most importantly , U.S VIX fell 5% yesterday. Here as well we can hope markets to stabilize and VIX to collapse. Premiums are quite attractive considering only 6.days left for expiry  1000 points away put options are also trading at 20-25 rs premium. These put option buyers you know are crazy peo