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😀

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