Skip to main content

Pre - Market Report (16th March 2020)

  1. Violent actions in Stock Markets since Friday morning.
  2. Our markets closed at lower circuit along with Soth Korea and Japan on Friday & during the 45 minutes closure, European and US futures shot up.
  3. Once we began to trade again, markets shot up.
  4. LIC reportedly pumped in large amount of money to support the market & also all Shorts were trapped which led to huge Short covering.
  5. Nifty future fell 1300 points then shot up 1800 points.
  6. Once our markets closed, action began in US markets.
  7. Trump announced Emergency in U.S through which it will help to release lot of money to fight against Corona & Dow ended 10% higher.
  8. Next day, Apple announced closure of all its stores outside China.
  9. Today Morning the biggest surprise came from Fed as Fed cut rates by 1%. It also announced QE of 700 billion and other liquidity measures.
  10. Other G7 countries also seems to be coordinating.
  11. Despite all these measures, US futures fell 5% to hit lower circuit.
  12. But some Asian markets are higher.
  13. Asia is mixed. Japan and South Korea are up while other markets are down.
  14. SGX Nifty is down by 400 points.
  15. I Strongly Believe interest rate cut is not a Long Term Solution to fight Global Pandemic. In the past whenever Emergency rate cuts have happened Stock Markets in the longer run have reacted Negativity to it.
  16. SGX Nifty is totally confused and decided to trade at Thursday's closing level.
  17. Meanwhile, YES Bank restructuring news came as a Shocker.
  18. Those who are holding more than 100 shares, can not sell more than 25% of their holding for next 3 years. So it's like an Fixed Deposit with Zero Value after 3 Years.
  19. These kind of restrictions has never happened in India, not only in India, in entire world.
  20. China Manufacturing data came very bad at minus 13.5%.
  21. But Asian markets seems to have factored in that news.
  22. Markets are not reacting after this news.
  23. FIIs have sold for Rs 6000 plus Crores in Cash market.
  24. Market volatility is here to stay for some more time. VIX has reached 57+ levels.
  25. If you have no positions, best way is to keep away from markets.
  26. Wait for India VIX to fall below 30, to resume Trading.
  27. US cut rates by 50 basis point a week before and another 100 basis point now.
  28. Many other countries also have done that.
  29. Will India do the same? That has been going on in Everybodys mind for the last one week.
  30. Meanwhile, SEBI seems to be considering a Ban on Short selling and Intraday Trading.
  31. But in the past, this kind of measures helped markets to go lower rather than helping it to Stabilise.
  32. Futures of both the Indices have already been Trading at 50-60 points Discount. In Futures you would hardly make few points in Index moves after your Entry
  33. Option Contracts are already trading at huge Premiums because of VIX. So if you expect any extreme Moves buy OTM Call Options.
  34. Friday (March 13) rally of 17% from Lows Shouldn't fool you as a Trader , that was just a recovery rally . Still Everything hasn't not been solved so it remains sell on rally Market.
  35. When I say not to trade in these sort of Markets they don't realise it.
  36. After losing Money they feel guilty and say "that they shouldn't have Traded".
  37. Over the Weekend , I have almost Received 80+ Messages of Traders who have lost Everything & have become Bankrupt. Mostly the Traders trading in Futures. They couldn't square off their Positions when Markets hit Lower Circuit & by the time they Squared off their Positions it was too late.
  38. Others lost Money because of Gambling Mindset & not doing Risk Management.
  39. Do not try any Adventures. Avoid Futures Trading as high Movements are being Witnessed in matter of Seconds. 

Kindly WhatsApp your Comments at 07719887348.
Feedback & Constructive Critisizm are always Welcome😀


Popular posts from this blog

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 (18th April 2022)

U.S Markets closed lower on Thursday. Asian markets are all lower. Dow futures are lower right now. SGX Nifty is down 250 points. Indicating a huge gap down at the open. Reason is the Global markets underperformance plus not so good corporate results. Infosys has disappointed and missed earnings by street estimates. Infy ADR was down 9% in last 2 trading sessions in U.S Hdfc bank also missed earnings but asset quality has been improved. Today we can expect huge gap down openimg in infy. Hdfc bank has limited downside left because it has already fallen a lot after the merger news. 17150-17200 is a strong support on Nifty and this is where 200 DMA kicks in. If you are a Bull this is a large support area. Markets are oversold and this offers a good opportunity to go long. Nect support comes in at 17k. If global markets keep declining then no support would work. Bank Nifty 200 DMA kicks in at 36800. Bank Nifty looks much stronger than Nifty currently as IT isn't included in

Pre - Market Analysis (11th April 2022)

U.S Markets closed mixed on Friday. Dow Jones closed slightly higher. S&P 500 was flat and Nasdaq is very weak. Right now , Dow futures are lower. SGX Nifty is down 100 points. So we are in for a gap down opening today. Friday was a quite interesting day. As expected , RBI policy was a status quo. Nifty broke Thursday low of 17640 and traded below for quite some time. And then for a short squeeze. All the shorts were trapped and we had a big rally. Most importantly , India VIX was down 7% on Friday. I expect markets to consolidate between 17600 to 18100 for a while. I do not see a reason to be excessively bearish now. Markets went from 17700 to 18100 because of hdfc twins. And then crashed to 17600 because of these both stocks. These both stocks have given up all of their gains and are back to Pre merger levels. There is very limited downside now for these stocks and expecting these stocks to bottom out soon 17500 to 17600 is a strong buy zone on Nifty. Also earnings se