- US markets closed 3% higher Yesterday.
- U.S Markets have recovered almost 45% of what they have lost due to Corona Virus Crash.
- SGX Nifty is up 140 points in the Pre - open.
- Interesting Observation which I got is Indian Markets are Blindly copying the U.S markets from past 2 days.
- On Tuesday U.S Markets were up 8% our Markets also ended 8% higher.
- Wednesday the U.S Markets were up 2-3% in first half & then closed flat by End of the day. Same Happened in our Markets Yesterday.
- Will we do the same today? Until how long will this continue? Nobody Knows.
- Nifty is likely to move between 8000 to 9000. This seems to be a range where Markets would keep Consolidating.
- If 9000 Breaks & Sustains then we should expect higher levels on Nifty.
- Yes we are in a Pull Back / Short Covering rally & I think this has enough legs to last further.
- Markets have again become Very Volatile. Yesterday Bank Nifty made a swing of 1500 Points just in a span of one hour.
- I see there is Bearishness Everywhere. Everybody expects the Markets to make fresh Lows due to Extension of Lockdown etc. While this may happen , currently I don't see Markets reacting to the same.
- As Everybody is Bearish ( Youtube Experts , Instagram Followers) this is a buy signal to me.
- The way to make big Money is to "SELL GREED & BUY FEAR"
- I am Bullish just in the Short term & I expect the rally to last more Further.
- So , I've changed my Strategy from Sell on Rallies to "BUY ON DIPS".
- The way I will ride this rally is to buy far OTM April Expiry Call Options.
- Far OTM call options because If I lose it won't hurt me much but if I win this can easily give 3-4 times return.
- In the Long run Economy is likely to weaken & the Markets could retest the lows of 7500. In the Immediate short run this Pullback could last further.
- 9000 on Nifty seems to be an Immediate Hurdle and Markets REVERSED Yesterday from those levels.
- Sold some Far away Call Options & Put Options Yesterday. (16000 PE & 21000 CE on Bank Nifty)
- Next week there are only 3 Working days for the Markets so would look to build some Short Straddles on Nifty as the Premiums are high.
- Yesterday Markets just moved in a Range , made Wild Swings , gave an Indication as if we are in a TRENDING direction but that never happened.
- It was in a Rangebound zone & fooled majority of the Traders. I expect the Markets to be in a Rangebound zone & keep going up slowly.
- 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.
- Consult your Financial Advisor & Trade on your own risk.
- 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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