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Pre - Market Analysis (3rd September 2020)

  1. US markets closed a percent higher yesterday.
  2. But Asian Markets are Flat.
  3. SGX Nifty is up by 30  Points.
  4. The talk of the Town is SEBI pledging & Margin rules.
  5. SEBI Regulations have bought in too many complications for traders who trade with higher capital.
  6. Monday Markets fell Drastically most of it was due to SEBI pledging rules & some of it was Indo - China news.
  7. In the Blog I mentioned that sharp sell offs give opportunity to enter in Bull Markets.
  8. Nifty is up 200 Point from Monday low.
  9. Until further clarity I've not been doing trading.
  10. SEBI rules not to be tried & tested for further continuation.
  11. Bank Nifty is so highly volatile due to Illiquidity that 200-300 Point moves are happening in 5 minutes.
  12. One should be very very cautious while trading in such situations.
  13. There are so many issues which are persisting right now.
  14. Firstly , the Pledging issues.
  15. Many of our clients have applied for Pledge request but it's still not being accepted.
  16. It shows in Pending from 4 days.
  17. For some 50% accepted and 50% is in Pending.
  18. 20% compulsory margin to be maintained in Account.
  19. Both for Squaring off trades as well as executing the Trades.
  20. The Implementation date was from October but suddenly then have done it now itself.
  21. This clearly shows that SEBI doesn't want to promote traders with low Capital to deal & Trade in Derivatives.
  22. Monday I was sitting at huge MTM losses.
  23. Tuesday a part of it was covered as I had some emergency funds to cover.
  24. By expiry end hoping to come out in Green.
  25. Expecting today to be a choppy day.
  26. Choppy days are when are Markets do not give a big move in either direction and Trade flat throughout.
  27. Trend still remains intact & there's nothing to worry.
  28. Bank Nifty firstly took Nifty higher but now it's underperforming significantly.
  29. Expecting more of this continue.
  30. Consult your Financial Advisor & Trade on your risk.
  31. Nifty might tetween 11420-11600.


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