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Pre - Market Report (1st June 2020)

  1. U.S Markets closed on a Flat Note on Friday.
  2. Asian markets are positive.
  3. China Manufacturing PMI ( Purchasing Managers Index)  data came above 50, which is a positive surprise.
  4. PMI above 50 Indicates that Economy is Expanding & Growing.
  5. SGX Nifty is up more than 150 Points due to this news.
  6. India , Slowly and Steadily is heading towards re - opening of Economy in a phased manner.
  7. Many Relaxations have been announced related to Business & Business man in Lockdown 5.0.
  8. Strange thing happened on Friday that Nifty Futures was Trading at 90 Points discount Compared to spot price throughout the day.
  9. Generally people are still excessively Bearish on Markets and each month they expect a big crash.
  10. But Bull Markets always climb wall of worries.
  11. I am Bullish on the Markets for June Month.
  12. Not excessively Bullish but Mindly Bullish.
  13. I've Taken a Ratio Spread/ Butterfly for June Expiry.
  14. Bought 10000 CE for June Expiry Month.
  15. Naked Option Buying is not my Cup of Tea as if my view goes Wrong or even if Market consolidates i lose Everything.
  16. To Hedge 10,000 CE bought I've sold 10300 & 10500 CE at such Premiums covering my 10,000 CE cost.
  17. This Strategy only requires ₹70-80k per lot now.
  18. Previously the same Strategy would have required 2.5 Lakh Margin.
  19. Due to new Circular for reduction of Margins by SEBI.
  20. Margin reduction on Hedging contracts from SEBI is a big Positive for Hedge Traders like me.
  21. Margin on Naked Options & Futures Trading have been Increased by 50-60%.
  22. SEBI has done a great JOB by reducing Margins as it builds Hedging mindset among people and build low risk Strategy.
  23. Initially , Futures and Options were bought only for Hedging. The sole purpose was only to Hedge.
  24. Now , more than 90% of the Traders take it as Gambling which is Sad.
  25. Markets will only react to Suprising News & Fresh News.
  26. News which is already known to everybody , Markets won't react to it.
  27. FII's were Contineously selling in May Month but they have started buying now.
  28. Last 2 working days FII's bought more than 5000 crore.
  29. The Trend has become Positive and we are in a Buy on Dips Market now.
  30. Dips should be Accumulated and positions are to be built over higher side.
  31. Nifty might trade between 9550 to 9730 today.
  32. Auto Stocks will continue to Outperform now in short term.
  33. Bajaj Auto has almost reached it's Pre - Corona Prices of near about 2400.
  34. Most of the World Markets have recovered more than 50% at least but Indian has recovered only 30-35%.
  35. India seems to be catching up now.


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Pre - Market Analysis (18th April 2022)

U.S Markets closed lower on Thursday. Asian markets are all lower. Dow futures are lower right now. SGX Nifty is down 250 points. Indicating a huge gap down at the open. Reason is the Global markets underperformance plus not so good corporate results. Infosys has disappointed and missed earnings by street estimates. Infy ADR was down 9% in last 2 trading sessions in U.S Hdfc bank also missed earnings but asset quality has been improved. Today we can expect huge gap down openimg in infy. Hdfc bank has limited downside left because it has already fallen a lot after the merger news. 17150-17200 is a strong support on Nifty and this is where 200 DMA kicks in. If you are a Bull this is a large support area. Markets are oversold and this offers a good opportunity to go long. Nect support comes in at 17k. If global markets keep declining then no support would work. Bank Nifty 200 DMA kicks in at 36800. Bank Nifty looks much stronger than Nifty currently as IT isn't included in

Pre - Market Analysis (11th April 2022)

U.S Markets closed mixed on Friday. Dow Jones closed slightly higher. S&P 500 was flat and Nasdaq is very weak. Right now , Dow futures are lower. SGX Nifty is down 100 points. So we are in for a gap down opening today. Friday was a quite interesting day. As expected , RBI policy was a status quo. Nifty broke Thursday low of 17640 and traded below for quite some time. And then for a short squeeze. All the shorts were trapped and we had a big rally. Most importantly , India VIX was down 7% on Friday. I expect markets to consolidate between 17600 to 18100 for a while. I do not see a reason to be excessively bearish now. Markets went from 17700 to 18100 because of hdfc twins. And then crashed to 17600 because of these both stocks. These both stocks have given up all of their gains and are back to Pre merger levels. There is very limited downside now for these stocks and expecting these stocks to bottom out soon 17500 to 17600 is a strong buy zone on Nifty. Also earnings se