- US markets closed 2.5% higher Yesterday.
- Asian Markets are all in Green.
- Green Colour all Around.
- SGX Nifty is up 2% & Trading near 9750.
- Today is the Weekly & Monthly Expiry of Futures & Options Contracts.
- Tomorrow is a Holiday for our Markets & we are heading in for a long Weekend.
- Usually on the days as of Expiry , Volatility is the highest.
- We Witnessed high Volatility in the second half of Yesterdays Trading Session as well.
- Nifty broke out of from it's Resistance of 9400 & we have Witnessed a large rally of more than 300 Points since then.
- We are in a large Global rally & our Markets are also taking part in the same.
- Next resistance is around 9900-10000.
- Until then "Buy on Dip" strategy should work.
- Many People are asking me , who is the Hero of this Rally? Who is Responsible for this rally?
- My Simple answer is "SHORT SELLERS".
- Almost Everybody from past few weeks have been giving targets of 7000-6000 on Nifty.
- Now all these Short sellers have been Trapped. There is Monthly Expiry now and they have to cover their Positions & in turn they take Market higher.
- Market goes higher due to 2 reasons. Due to buying & due to Short Covering. This rally is mainly a short covering rally.
- So all those who made money in this Bull Rally should take a Minute and thank the "Short Sellers".
- Some Optimism combined with Huge Short Position build up over the Month is the root cause of this Rally.
- Risk - Reward isnt Favourable to buy on Nifty after a 200 point gap up.
- So wait for a Dip closer to 9600-9650 and look to build your Positions.
- As Today is Expiry & still many shorts are built in the System so Markets can witness a bigger rally as well.
- I will not be doing Intraday Option Selling today as Markets are highly Volatile.
- Extended Weekend , do not carry any Positions home. Lot might happen over the Weekend and its impact will be seen on Monday. So don't Gamble by carrying Positions over the Weekend.
- U.S Markets rallying due to Economic STIMULUS from their Government is Understandable.
- Our Government havent announced any STIMULUS yet so we are just playing our part in large Global rally.
- Trading in these Markets can be highly Deceptive as Mind & Economy says something , whereas your Screen tells something else.
- Eventually , Screen wins.
- Bought 9600 CE & sold 9650 CE.
- Sold 9100 , 9150 , 9200 , 9250 , 9300 , 9350 , 9400 PE.
- If you an Intraday Trader then you should keep two things in Mind today . First aim should always be to protect your Capital.
- Do not trade after 2 pm. All the Positions over the Month start to get covered up & logic doesn't work in these Situations only Luck does.
- Expecting Bank Nifty to Outperform Nifty today as Huge Short Positions have been built in the Financial Stocks over the Month.
- Consult your Financial Advisor & Trade on your own risk.
- stockmarketadvisory.in
- Many of you have shown Interest & have text me to Write a Blog on " Why the Markets are going higher Inspite of Negative News"?
- The Blog will be Posted over the Weekend.
U.S Markets closed higher yesterday. Most importantly , S&P 500 VIX crashed 10%. There was huge Volatility in global markets due to Fed event. Markets remain volatile only when they have topped out or have bottomed out. Right now I feel we have bottomed out at 16850. Asian markets are slightly lower now. Dow futures are lower. SGX Nifty is at 17500. Finally , the most awaited day has come. Budget 2022 is going to be presented today. Expectations are of a good and stable budget. Reasons are the Elections coming up and LIC IPO in March. Govt very well knows if LIC IPO has to go through , Market sentiment has to be good. Without good market spending it would be very difficult for IPO to go through. Market had already fallen a lot before the budget. Although we have rallied in last 2 days but still we have some upside left. Though I feel it's not favourable to chase today's gap up. Today's gap up is a good opportunity to book profits those who carried longs. Bud
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