- Trump Announced 2Trillion$ STIMULUS / relief package on the wake of Corona Virus.
- This has been the biggest STIMULUS Package announced till date for U.S Markets.
- Dow closed 2% higher Yesterday.
- All the World Markets seem to be in a Pullback phase including our Markets.
- Remember the Primary Trend is towards the Short side. What we are Witnessing now it just Pullback / Counter Rallys.
- This Pullback may last for some time now.
- Unless there is more Incremental bad news related to Corona Virus front I expect the Markets to be Rangebound & Consolidate.
- Today is Weekly Options Expiry and also Monthly Expiry for March Series.
- Expecting the Markets to Stabilise a bit from now & also expecting the VIX to reduce Significantly.
- SGX Nifty Indicating a Minor 50-70 point cut to begin with.
- The Big STIMULUS Package which got announced Yesterday Triggered a sharp rally Yesterday in our Markets as well.
- So there are high Expectations from our Government as well to Announced a good Relief package for the relief of Economy.
- Today I am Expecting the Markets to be Choppy and Consolidating.
- As there is an Expiry today & Premiums are quite high for both CE & PE expecting this could be a perfect day for Option Writers.
- So only for Intraday I will be doing only Option Writing today.
- Already have sold some far away Call Options 22000 & 23000 CE on Bank NIFTY& sitting on 90-95% Gains on them.
- For Option Buyers the advice would be to protect the Capital & even if you wanna take Positions it would be better not to trade on today's Expiry Options and trade on April Expiry Options as Premium decay won't be quick & time is in your Favour.
- It is also a good time to build Portfolio of FMCG , Consumption Stocks & Life Insurance stocks by deploying some Percentage of your Money.
- Nobody Knows when will we bottom Out & solve this problem so it is a good time to Accumulate stocks on every fall for Investors.
- Sold Axis Bank 600(Strike Price) April CE @7rs.
- IndusInd Bank 700(Strike Price) April CE @20rs.
- Views Expressed here are Personal & please refer to your Financial Advisor before entering a trade & Trade at your own risk.
- stockmarketadvisory.in
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
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