Skip to main content

Pre - Market Report (24th March 2020)

 
  1. US markets closed 3% lower Yesterday.
  2. U.S Fed Announced Unlimited buying power of Assets & also unlimited printing of money to bring enough Liquidity into the System.
  3. Meanwhile , Corona Virus cases doesn't seem to stop. Infact they have Constantly been rising day by day.
  4. Markets are likely to settle only when some Cure / Vaccination is Developed for Corona Virus.
  5. Meanwhile our Government & FM have not announced any sort of STIMULUS , relief package for the Economy. 
  6. This is a very bad news for our Stock Markets because everybody was expecting some Measures from the Govt & now due to ignorance over the Economy our Markets may go much more lower.
  7. India has around 500 active cases of Corona Virus currently & this can easily shoot up to 25000-30000 in a few weeks. Social Distancing is Important but issues related to testing etc should be tackled very Quickly.
  8. Im not being Pessimistic but im being Realistic & Mentioning that if we do not find cure for Corona Virus in next 1-2 Months we might be heading towards a Great Depression.
  9. Great Depression is when everything goes down by 90% ( Witnessed in the Year 1930)
  10. Stock Markets tend to Discount the Future & noticing the fall in Stock Prices now I think they are Discounting something nobody have thought of.
  11. SGX Nifty right now is up by 6%. These are the best times to go short in Bear Markets.
  12. Rallies should be sold into so the first trade would be to sell into the Rallies through April Puts on both Nifty & Bank Nifty. As only 3 days away for Expiry buying Puts of March is a risky event.
  13. Right now I do not have a Stoploss for my April Puts which I will be going to take because Markets are very Irrational & no level seems to work here.
  14. So the best thing is to follow the Conviction.
  15. I'll keep holding onto my puts until my Conviction stays in order. So kindly note that it's not only just for Intraday. Im willing to carry & hold onto this trade.
  16. Also right now I do not know when I will exit my Put Options as well. I would be managing my Position & keep Trailing Stoploss according to the Market.
  17. This appears to be a Dead Cat bounce on both the Indices & should likely be sold into & by the end of the day we can expect lower levels on both Nifty as well as Bank Nifty.
  18. It is also a good time to build Portfolio of FMCG , Consumption Stocks by deploying some Percentage of your Money.
  19. In Bear Markets sharp Pull Backs / Bounce will come but they are only an Opportunity to sell into the same.
  20. These Trades also have risk / reward in your Favour & today the ratio appears to be 1:4.
  21. Nobody Knows when will we bottom Out & solve this problem so it is a good time to Accumulate stocks on every fall.
  22. Views Expressed here are Personal & please refer to your Financial Advisor before entering a trade & Trade at your own risk.
  23. stockmarketadvisory.in

Comments

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