Skip to main content

Pre - Market Report (20th March 2020)

  1. US markets have Stabilises Yesterday & for the first time in last 10-15 Trading Sessions it has not moves more than 5%.
  2. Asian markets are all positive.
  3. SGX Nifty hit a low of 8000 yesterday night, now trading almost flat.
  4. Yesterday our markets experienced worst volatility.
  5. In first 3 minutes Bajaj Finance fell 20%, then shot up 20% only to fall 10%.
  6. 50% move in just one trading session, that too for a bluechip stock.
  7. Same was the case with many other stocks like HDFC Twins, Kotak Bank etc.
  8. Nifty fell 700 points then shot up 700 points and then fell 300 points.
  9. That is a total swing of about 20%.
  10. FIIs continue to sell at an amount of 4000 to 5000 crore.
  11. This kind of selling has not happened even in 2008.
  12. Now commodities also moving violently.
  13. Crude down 25% one day, 25% up next day.
  14. Coming to today's trade. I am expecting some Recovery/ short covering today.
  15. PM hinted some stimulus by saying 'Economic Task Force" headed by FM.
  16. Govts all over the world are taking some steps.
  17. So it will make sense for short sellers to cover the shorts today (and to short again on Monday morning) so as to avoid loss due to any big gap up.
  18. They are not likely to lose, as markets are at very low level, possibility of gap down is very low.
  19. Though markets were very bad, stocks like HDFC Bank closed in Green yesterday.
  20. Moreover, we can expect LIC to enter again today afternoon, to support the market.
  21. We have fallen almost 4400 Points on Nifty from it's all time high of 12400. Won't be Surprised if we can recover for 500-600 Points from here on.
  22. Incremental Shorting is not Adviced at current levels as your risk / reward doesn't favour.
  23. Trading for a Bounce / Pullback rally has risk /reward ratio of 1:3 which I prefer to Trade.
  24. However , im a Trader and I may be Wrong and have every right to change my Positions when I am wrong , so if my plan is not being respected by the Market I may alter it.
  25. Finance Minister may at anytime announce STIMULUS PACKAGE for Corona Virus this Weekend. Also there would be a whole lot of news related to Corona Virus so always Adviced not to carry fresh Positions over the Weekend.


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