- US markets closed on a Flat note Yesterday.
- Asian markets are also Trading Flat.
- SGX Nifty is also down 2%.
- Even with no Positive News , No Lifting of lockdown , Nifty Futures hit 10% Upper Circuit Yesterday.
- This came out of Nowhere and nobody expected the same.
- Got many Texts Yesterday from People who Carried Put Options & lost huge.
- 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.
- Yesterday was a Move that would satisfy the Bulls in short term & also improve Investor Confidence.
- 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.
- Yesterday they dint have any Option but just to exit their positions to cover their Shorts and this led to huge rally.
- Again those who Carried long Positions Yesterday are likely to be trapped today.
- Markets might Consolidate today or it is more likely that they will give up some of the Yesterdays gain.
- In India , almost all State Governments have requested the Central Government to extend the Lockdown.
- It is more likely that Lockdown will be Extended in most parts of the Country.
- Markets previously responded to Corona to each and every Negative news related to Corona Virus front and reacted very sharp to it.
- 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.
- There will be Breath taking rallies as Witnessed Yesterday. There will be sharp draw downs & you need to see them all.
- Both FII's & DII's were not buyers Yesterday.
- Not by a huge sum but about 1200 crores.
- 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.
- Nifty is likely to expire between 8000 & 9000.
- Remember Tomorrow is Weekly Expiry & if the Markets start to Consolidate the Premium decay will be high & fast.
- I will look to explore Opportunity in Option Selling as Tomorrow is the Weekly Expiry.
- Yesterday even after a 800 point rally on Nifty , put Option Premiums dint fall Proportionately.
- This shows that there is no Sufficient Bias on the Positive front.
- 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.
- 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.
- 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.
- stockmarketadvisory.in
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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