Skip to main content

Pre - Market Report (4th March 2020)


Pre Market Report:

  1. US markets fell Yesterday after rising more than 5% the day before.
  2. Dow fell about 800 points.
  3. Fed cut rates by 50 basis point in a surprising move, 2 weeks ahead of Fed meeting.
  4. This is the first out of turn rate cut by Fed after 2008 financial crisis.
  5. Other Govts are also acting & cutting interest rates to ensure Financial Growth & Liquidity in the System.
  6. Yesterday Australia and Malaysia cut rates.
  7. South Korea announced about 10 billion extra budget measures.
  8. US is planning fiscal measures also in addition to monetary measures.
  9. Now pressure mounts on RBI to cut rates.
  10. If RBI cuts rates, there will be powerful short covering.
  11. SGX Nifty is down by 60 points.
  12. Asian markets are mixed.
  13. Weekly options will add to volatility.
  14. Yesterday SGX Nifty hit 11220, then shot up to 11440 just after Fed rate cut, only to fall back to 11220. SGX Nifty swung more than 500 points.
  15. Markets may be highly volatile but may trade between 11000 and 11500.
  16. Option premiums are so high due to huge volatility & this is the best time to sell Options for Weekly Expiry.
  17. Bank Nifty 26000PE traded at Rs 160 yesterday.
  18. Gold and Crude are higher after US rate cut.
  19. If the markets do not stabilise, we can expect some action from Japan, UK and Europe.
  20. On every bounce I have been selling Call options.
  21. I sold 11600CE , 11700 CE in weekly Options.
  22. Bank Nifty weekly sold 30000, 30200, 30300, 30500CE.
  23. Remember rate cuts do not solve the problem of Corona Virus & this is a Temporary phenomena to boost the Sentiment of Markets.
  24. I will cut all Call options, if there are no more bad news from Corona front.
  25. Option Buying may play out to be very risky as the Premiums are quite high in both the Directions. Premiums will fall Drastically if VIX stabilises & also only 2 days left for Expiry so the time is less to cover up.
  26. Trend is Strong and its towards the Down Side. Still it is not a right time to go long on Indices by thinking that all the Negatives have been Priced in.
  27. After such huge Crash , we cannot witness a Vertical rally Immediately. There is a Process. First the Market Consolidates ,sets a base , makes a bottom and then starts to rally which takes time.
  28. Until then Whatever we are witnessing is just a Bounce it may be due to some short covering but buying hasn't started yet.
  29. Interesting data I have observed is Nifty Futures is Trading at Discount for this whole Expiry. This shows excessive Bearishness which is Prevailing in current Markets.
  30. 11400 is a short term resistance and 11100 is a short term support on Nifty.
  31. In such high Volatile Markets the best Strategy to trade is to reduce your Volumes and increase your Stoploss. The Problem in these Volatile Markets is the Movement is so severe that Stoploss gets Triggered most of the time & Trading without Stoploss is Equivalent to Driving a Vehicle without Brakes.

Comments

Post a Comment

Popular posts from this blog

BJP Falls short of Majority (5th June 2024)

1.U.S Markets closed higher Yesterday  2. U.S Futures are trading higher now. 3. Asian markets are higher. 4. Global cues are positive currently. 5. U.S Markets have made a short term bottom and now have reversed. 6. Gift Nifty is up more than 100 Points. 7. Yesterday was a big surprise to everyone. 8. Contrary to the exit Poll , things have been changed dramatically.  9. Exit Polls indicated a cakewalk win for the BJP. 10. Reality of the Ground level was entirely different. 11. There is BJP Govt forming but with a Coilition Govt. 12. Coilition Govt changes many aspects. 13. Firstly , the Govt cannot take decisions on its own. 14. It has to get approval of other parties as well. 15. This would hamper the growth prospects and future plans. 16. Last 10 years , the Government had come with a simple majority. 17. They worked freely. 18. This is a way good for democracy 19. One Govt dominating is not good for the Country , now everyone has to work for welfare of Country. 20. Com
Post a Comment
Read more

Global Shock !! (6th August 24)

1. U.S Markets closed lower YESTERDAY.  2. All the indices closed lower. 3. Right now , Dow Futures are higher. 4. Asian Markets are all higher. 5. All the Global Markets are Positive right now. 6. Last 3 days , there has been a flash crash in all the Global Markets. 7. There was a Mayhem specially in the Japanese Markets. 8. Japan had hiked the interest rate after 15 long years due to which their currency depreciated and it caused a 20,% fall in Japanese markets. 9. There are warnings of U.S recession post the Jobs data report. 10. Israel - Iran war has been taken escalation.  11. All these news have spooked the Global Markets.  12. U.S VIX jumped 400% in last 4 trading sessions. 13. India VIX jumped 50% Yesterday.  14. Although it doesn't impact us at all  , it's the nature of markets to react on news. 15. Right now , Nikkei the Japanese index has opened positive  16. 24000-23850 is a very strong and final support. 17. I expect yesterday's low to the low for A
Post a Comment
Read more

Global Markets Mayhem !! (5th Aug 24)

1. U.S Markets closed lower on Friday. 2. All the indices closed lower. 3. Right now , Dow Futures are lower. 4. Asian Markets are all lower. 5. All the Global Markets are Negative today. 6. From Thursday to Monday Morning , U.S Markets have crashed more than 6%. 7. This is a terrible & an Alarming fall. 8. U.S VIX jumped another more than 20% on Friday. 9. This is the fearful data point. 10. Reason for all this is because of Geopolitical conflicts. 11. Iran - Israel tensions. 12. Japan currency depreciation etc. 13. All this is leading to a flash crash in the Markets. 14. 24500-24400 is a crutial support for nifty. 15. We are likely to open closer to these levels as per Gift Nifty. 16. First hour is the key today. 17. If we do not break the first hour low throughout the day then we might expect a reversal. 18. A further correction may be expected if the first hour low gets taken out. 19. Nifty might trade between 24300 to 24700 today. 20.  stockmarketadvisory.in
Post a Comment
Read more