Skip to main content

Pre - Market Report (8th April 2020)

  1. US markets closed on a Flat note Yesterday.
  2. Asian markets are also Trading Flat.
  3. SGX Nifty is also down 2%.
  4. Even with no Positive News , No Lifting of lockdown , Nifty Futures hit 10% Upper Circuit Yesterday.
  5. This came out of Nowhere and nobody expected the same.
  6. Got many Texts Yesterday from People who Carried Put Options & lost huge.
  7. Thats why I am Repeatedly saying almost on a daily basis to not carry any Positions as Markets are opening with huge gap ups and gap downs almost on a daily basis.
  8. Yesterday was a Move that would satisfy the Bulls in short term & also improve Investor Confidence.
  9. According to me , the reason for such huge rally was Short Covering. Markets were highly Oversold and shorts were not getting any sort of support/ follow through in past few days.
  10. Yesterday they dint have any Option but just to exit their positions to cover their Shorts and this led to huge rally.
  11. Again those who Carried long Positions Yesterday are likely to be trapped today.
  12. Markets might Consolidate today or it is more likely that they will give up some of the Yesterdays gain.
  13. In India , almost all State Governments have requested the Central Government to extend the Lockdown.
  14. It is more likely that Lockdown will be Extended in most parts of the Country.
  15. Markets previously responded to Corona to each and every Negative news related to Corona Virus front and reacted very sharp to it.
  16. Now Markets are not reacting on Negative News but rallying on Positive news. So my advice is not to link Corona Virus news with Markets & get biased about your Trading.
  17. There will be Breath taking rallies as Witnessed Yesterday. There will be sharp draw downs & you need to see them all.
  18. Both FII's & DII's were not buyers Yesterday. 
  19. Not by a huge sum but about 1200 crores.
  20. It's always Difficult to Analyse the next day market move after such a huge Trending day. So this is a time not to get too positive not be too bearish. Time to remain Neutral and stick to Analysis.
  21. Nifty is likely to expire between 8000 & 9000.
  22. Remember Tomorrow is Weekly Expiry & if the Markets start to Consolidate the Premium decay will be high & fast.
  23. I will look to explore Opportunity in Option Selling as Tomorrow is the Weekly Expiry.
  24. Yesterday even after a 800 point rally on Nifty , put Option Premiums dint fall Proportionately.
  25. This shows that there is no Sufficient Bias on the Positive front.
  26. Those who made Money Yesterday are adviced not to take wild Trades and huge RISKS. Protect what you earned as you may easily give up some of it in next few days as Markets might keep chopping around.
  27. Bank Nifty was the star of the show Yesterday as there were many Short Positions on that Counter and most of it got covered Yesterday.
  28. Reminder : Do not link Corona Virus news ( Deaths , Positive Cases etc)with Markets now. Markets Seem to have absorbed all of it and now only any Major Incremental News ( extending Lockdown etc) would only impact the Markets. 


Popular posts from this blog

Pre - Budget Analysis (1st Feb 2022)

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

Pre - Market Analysis (17th Feb 2022)

U.S Markets closed flat yesterday. Right now Dow futures are slightly lower. Asian markets are slightly higher. SGX Nifty is near 17380. Suggesting a flat start for the day. Yesterday was a heavy Volatile session. Markets have moved all over the place yesterday. At one point of time Nifty rallied and at one point of time we were ready to cross 17500. Then news of Russia came that Russia has not fully taken back their military troops. This led to a drastic fall in the last 2 hours. Nifty crashed all the way to 17300. India VIX came to positive. U.S Markets at one point of time were down quite significantly yesterday. But later during the day they have recovered most of their losses. Most importantly , U.S VIX fell 5% yesterday. Here as well we can hope markets to stabilize and VIX to collapse. Premiums are quite attractive considering only 6.days left for expiry  1000 points away put options are also trading at 20-25 rs premium. These put option buyers you know are crazy peo

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