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

Pre - Market Analysis (30th Jan 2022)

1. U.S Markets closed higher on Friday. 2. Right now , dow futures are lower. 3. Asian markets are mixed. 4. SGX Nifty is up 30-50 Points. 5. There's no point discussing Global markets today. 6. As we are dealing with our own local issues as of now. 7. The talk of the town is Adani Group. 8. Every stock Market participant during last 2 days have not spent as much time with their wife /gf /husband /bf as they have spent on researching Adani stocks. 9. They shouldn't have wasted so much time in research and should've spent their time with loved ones. 10. As Ultimately my Pre Market report would clear all. 11. Now , the Adani stock price has gone below the FPO price. 12. FPO price is in the range of 3100-3200 and stock price is around 2800  13. Who will subscribe to FPO when they can buy shares much cheaper from the Market? 14. Also over the weekend Adani has come up with a 450 page report addressing one by one the allegations made by Hindenberg.  15. I haven't
Post a Comment
Read more

Pre - Market Analysis (2nd Feb 2022)

1 U.S Markets closed lower Yesterday. 2. Right now , dow futures are lower. 3. Asian markets are mixed. 4. SGX Nifty is down 150 Points. 5. Yesterday was the Fed event in U.S 6. It was expected that they would raise rates by 25 basis points. 7. The same happened yesterday and in spite of that Markets crashed yesterday.  8. Yesterday was a highly Volatile day. 9. Markets were all over the place yesterday.  10. Before the budget , markets were higher. 11. During the budget , markets were flat. 12. After 1 pm markets were at the peak of Volatility.  13. Bank Nifty was down 1000 points by 2.45 pm. 14. In next 30 minutes it recovered all of its losses. 15. The budget was neither good nor bad. 16. The income tax slabs have been revised but also the insurance benefit has gone. 17. All the Insurance companies crashed yesterday.  18. This is a structural change coming out of budget now. 19. Adani stocks crashed yesterday.  20. So clearly there was valuation over hang which is gettin
1 comment
Read more

Nifty hits 17k (15th March 2023)

1. U.S Markets closed higher yesterday.  2. Right now , U.S Futures are lower. 3. SGX Nifty is up 80-100 points. 4. Asian markets are mixed. 5. There has been 4 days of relentless selling in our Markets  6. The reason doesn't seem to be Banking collapse in United States. 7. U.S Markets have settled after a knee- jerk reaction. 8. Our Markets haven't settled yet. 9. This isn't a selling like the previous ones. 10. Previously FII's used to target few nifty stocks  11. Used to sell them and create panic. 12. This selling is now an all around selling. 13. Broader Markets have been bleeding extensively. 14. There is pain all around. 15. Now 17300 becomes a very important resistance. 16. Nifty might retest 17300 and then break 17k. 17. Markets won't collapse in a hiff.  18. There would be intermittent rallies in between to take weak shorts out. 19. FII's have now been selling aggressively.  20. Nifty might trade between 17000 to 17300 today. 21. stockmarke
Post a Comment
Read more