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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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U.S Markets closed mixed Yesterday. Dow futures are slightly higher right now  Asian Markets are mixed. Indian Markets are highly volatile between 16750 to 17400. Within this range markets have been making wild swings. Yesterday Nifty did retest 16950 and bounced back sharply from there. Yesterday it was a sharp recovery and Nifty closed at the highest point of the day. Today we have weekly expiry. Generally weekly expirys are volatile. 16950 to 17200 is the range for expiry. In case if we break any of the levels then we might get a larger move during the day  HDFC Bank will be delivering the results this weekend  Banking stocks are expected to deliver good results  Yesterday both the IIP and Inflation data came at negative. Inflation rose to 7.4% and Production also has recuced. So it's a double whammy on both fronts . Next leg of move will be decided by the results of the company's. Until then market is likely to stay sideways. Nifty might Trade between 16950 to 1

Pre - Market Analysis (3rd November 2022)

U.S Markets closed lower Yesterday. Right now Dow futures are higher. SGX Nifty is down 150 points. Asian markets are lower. Yesterday there was a Fed event in U.S Markets. General expectations were an increase of 75 basis points  Exactly the same happened and at 11.30 markets recovered sharply from lows  Then at 12 as Fed governer started speaking , it was a complete Hawkish statement. This induced lot of volatility and also selling pressure. U.S Markets closed at the low point of the day. Dow Jones fell 500 points. Although all this happened, U.S VIX didn't shot up It stayed flat. HDFC Bank ADR was down 2% yesterday. This could bring pressure in Bank Nifty. However I feel yesterday was an over reaction in U.S Markets. Markets should stabilize from today. 18000 is a strong support for the day. Previously as well many times Nifty went above 18k but couldn't sustain. Nifty might Trade between 17900 to 18150 today.