Skip to main content

Pre - Market Analysis (3rd August 2020)


  1. US markets were Trading Negative on Friday but in last 45 minutes U.S Markets closed in Green from being down more than 300 points.
  2. Asian Markets are all over the place and are Trading Mixed.
  3. SGX Nifty is Trading Negative by 60 Points.
  4. First thing which im noticing in all the Markets is contraction of Markets.
  5. Contraction of Markets means a few stocks performing well , mostly index heavy weights.
  6. U.S Markets the highest Weightage is of Amazon and it has come up with great results 
  7. Indian Markets , Reliance has more than 15% weightage. Due to Reliance itself , our Markets have Witnessed big rally in the Month of July.
  8. So these handful of index Heavyweights are only Rallying.
  9. Other way of looking at it is Bank Nifty seems to be very Weak.
  10. Banking stocks havent joined the rally yet.
  11. So Bank Nifty is a major index to measure about Economy.
  12. Because of handful of companies Nifty crossed 11k.
  13. Auto Sales have imported Considerably and all the companies have posted very good sales numbers over the Weekend.
  14. This Thursday we have an important RBI Policy.
  15. This would be a major event for Bank Nifty.
  16. Advice is to remain Cautious on the upside.
  17. 11000 is a major support on Nifty and 11300 is a major Resistance.
  18. Once 11000 breaks then we may witness further selling in the Markets.
  19. FII's have turned Net Sellers whereas DII's remain Buyers.
  20. Reliance also seems to have lost it's Momentum and has Corrected 5-6%.
  21. August Series will be highly Volatile and Trading without Hedging can lead to destruction of Capital.
  22. SEBI new rules will be Implemented in a Staggered manner from Dec 2020.
  23. All the Intraday Traders who used to get fancy 15-20 times Leverage will become a history now.
  24. Positional Hedging seems to be the next good way to trade.
  25. Nifty might Trade between 10920-11060 today.
  26. stockmarketadvisory.in

Comments

Popular posts from this blog

Bull Call Spread Options Strategy ( With Practical Example)

I Strongly believe , to be Successful in Stock Markets you Require two things : 1) Edge 2) Hedge Edge means having your own Trading System , following your own consensus & Conviction. Hedge is like an Insurance Policy , it will protect you from losing big and also maximise your earning potential over time without Destruction of your Capital. I will be Sharing one of the Hedging Strategy here. Example : Nifty on Friday (5th June) has closed around 10150. You are Bullish for this Weekly Expiry and what you to do is buy a Call Option of 10200 which is Trading around ₹120. Buying or selling naked Options involves high risk as its equal to betting. If you win you win Big or else you lose Everything. So buying naked Options isnt my Cup of Tea. What will I do in this Scenario? I would buy a 10200 CE (11th June Expiry ) at ₹120 and would sell a 10300 CE (11th June Expiry) at ₹80 to manage my risk. Now there are 3 Situations which can happen : 1) Nifty continues to rise: The 102

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