Skip to main content

Pre - Market Report (5th March 2020)

  1. Dow closed more than 1000 points higher.
  2. Volatility had begin last Monday & since then, out of 8 trading sessions, I think Dow moved more than 1000 point up or down on 6 days.
  3. Asian markets are positive.
  4. India is not following Global cues now as the Fear of Corona Virus in India is driving India markets crazy.
  5. Yesterday it was so volatile, Bank Nifty fell more than 1000 points and recovered more than 600 points from low.
  6. But FII sell figure has come down, below Rs 1000 crore, for first time in last two weeks.
  7. DIIs also have bought for less than Rs 1000 crore.
  8. Today is weekly expiry, so volatility is likely to continue.
  9. Despite strong Global cues, SGX Nifty has been trading in Red.
  10. Corona Virus fear seems to be receeding, particularly in China & is increasing in India.
  11. SBI Card IPO, QIB portion over subscribed by 57 times. 
  12. Those who haven't Subscribed yet , today is the last day to Subscribe.
  13. It is likely to over subscribe by more than 100 times as HNIs and Retail will apply only on last day & this is on the way of becoming a Blockbuster IPO & this might help SBI to stabilise.
  14. Bank Nifty under performed yesterday & HDFC Bank was the main Laggard.
  15. If there is any short covering, Bank Nifty will out perform.
  16. Good Global cues and bad Local cues, markets can go both sides and that is what happened yesterday.
  17. As I said earlier, Nifty will be making violent moves between 11000 and 11500.
  18. With high determination by DIIs and improving Global cues, I do not think these far OTM option buyers will make money if they hold the positions until maturity.
  19. Option buying is basically for momentum players, they get in and get out before momentum dies.
  20. Only hedgers will hold the options until expiry.
  21. US markets came out of correction territory. By US definition, more than 10% fall from high is called Correction and more than 20% fall from high is called Bear market.
  22. In last 3 days, Dow was up more than 1000 points on two days.
  23. If markets are higher, expect some TV channels to give some bad news between 2 pm and 3 pm. 😛😛😛.Be cautious in the last one hour, keep your volumes low.
  24. I have been Receiving many texts and messages as to how should one trade in such Volatile Markets?
  25. The Answer is to identify the Boundaries and trade Opposite trades near the Boundaries.These are the best Risk - Reward Trades in your Favour.
  26. Nifty short term support is 11100 and resistance is near 11400. Yesterday Nifty was Trading in the same range whole day. So taking Opposite Trades particularly when Markets are near Boundaries by keeping a strict Stoploss is the way to go.

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