- US markets closed 2% lower Yesterday.
- Asian Markets are almost flat.
- Coming few weeks are highly Critical related to Corona front. Both in U.S as well as in India.
- Yesterday , a good News came from China front that their PMI data for the Month of March has Increased.
- This shows that Companies after getting out of Lockdown can expand their Business & create demand Immediately.
- The level of VIX shows the level of Panic. VIX is reducing Considerably both in U.S Markets as well as our Markets.
- Yesterday India VIX was down more than 10% . This is a good sign.
- SGX Nifty indicating a 1% negative opening as of now.
- Bank Nifty lot size for F&O Contracts will be Increased to 25 shares per lot from July onwards.
- Today is Weekly Expiry on Options so there might be some sharp Irriational rallies in 2nd half of the Trading Session.
- The Plan is to do just Option Selling today. As Time Value keeps reducing the Option Premiums & it's a low Volatile Market as compared to March series so Premium Eating might be an easy money job.
- I do Option Selling mostly in Bank Nifty and very selective in Nifty. Bank Nifty offers good movement so Option Selling on various Strike prices gives good returns.
- I exit my Positions by 3 pm because later on there are Violent Swings on Bank Nifty.
- 16000 PE & 23000 CE for 1st April will likely open at single digits so will exit this Immediately as soon as market opens.
- Will look to enter into fresh Straddles in Bank Nifty in range of 700-800 Points and in Nifty in range of 200-300 Points.
- Related to Equity Trading , keep your Focus on Stocks where there has been excessive short building during last Month. This can give short covering moves today.
- If lockdown is extended in India then we might test the level of 7500 on Nifty again.
- Option Buyers should again remain very Cautious today because there is not excessive Volatility as we used to Witness in March.
- Also I might eat away the Premiums. So it's better to trade in coming week Expiry Options. You get the Advantage of time.
- Tomorrow is a Holiday so again it's not Advisable to carry any sort of large positions over a Holiday.
- Friday , Monday , Tuesday & Wednesday ( first half) I focus on Option buying.
- Wednesday (Second half ) & Thursday ( Weekly Option Expiry day) I focus on Option Selling.
- Option Buying is also done on Wednesday & Thursday only in case of Trending Markets.
- Expecting the Expiry between 8300-8700 today on Nifty.
- Bank Nifty would be between 19000-20000.
- Be Safe than Sorry , follow Stoploss and Trade with a Plan.
- Stay Safe , Stay Home.
- stockmarketadvisory.in
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
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