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Pre - Market Report (30th April 2020)

  1. US markets closed 2.5% higher Yesterday.
  2. Asian Markets are all in Green.
  3. Green Colour all Around.
  4. SGX Nifty is up 2% & Trading near 9750.
  5. Today is the Weekly & Monthly Expiry of Futures & Options Contracts.
  6. Tomorrow is a Holiday for our Markets & we are heading in for a long Weekend.
  7. Usually on the days as of Expiry , Volatility is the highest.
  8. We Witnessed high Volatility in the second half of Yesterdays Trading Session as well.
  9. Nifty broke out of from it's Resistance of 9400 & we have Witnessed a large rally of more than 300 Points since then.
  10. We are in a large Global rally & our Markets are also taking part in the same.
  11. Next resistance is around 9900-10000.
  12. Until then "Buy on Dip" strategy should work.
  13. Many People are asking me , who is the Hero of this Rally? Who is Responsible for this rally?
  14. My Simple answer is "SHORT SELLERS".
  15. Almost Everybody from past few weeks have been giving targets of 7000-6000 on Nifty.
  16. 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.
  17. Market goes higher due to 2 reasons. Due to buying & due to Short Covering. This rally is mainly a short covering rally.
  18. So all those who made money in this Bull Rally should take a Minute and thank the "Short Sellers".
  19. Some Optimism combined with Huge Short Position build up over the Month is the root cause of this Rally.
  20. Risk - Reward isnt Favourable to buy on Nifty after a 200 point gap up.
  21. So wait for a Dip closer to 9600-9650 and look to build your Positions.
  22. As Today is Expiry & still many shorts are built in the System so Markets can witness a bigger rally as well.
  23. I will not be doing Intraday Option Selling today as Markets are highly Volatile.
  24. 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.
  25. U.S Markets rallying due to Economic STIMULUS from their Government is Understandable.
  26. Our Government havent announced any STIMULUS yet so we are just playing our part in large Global rally.
  27. Trading in these Markets can be highly Deceptive as Mind & Economy says something , whereas your Screen tells something else.
  28. Eventually , Screen wins.
  29. Bought 9600 CE & sold 9650 CE.
  30. Sold 9100 , 9150 , 9200 , 9250 , 9300 , 9350 , 9400 PE.
  31. If you an Intraday Trader then you should keep two things in Mind today . First aim should always be to protect your Capital.
  32. 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.
  33. Expecting Bank Nifty to Outperform Nifty today as Huge Short Positions have been built in the Financial Stocks over the Month.
  34. Consult your Financial Advisor & Trade on your own risk.
  36. Many of you have shown Interest & have text me to Write a Blog on " Why the Markets are going higher Inspite of Negative News"?
  37. The Blog will be Posted over the Weekend.


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