Skip to main content

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.
  32. stockmarketadvisory.in

Comments

Post a Comment

Popular posts from this blog

Pre- Market Analysis (5th May 2022)

U.S Markets closed higher yesterday. Asian markets are higher. SGX nifty is up 150 points. Yesterday was a very tricky and unexpected session. As soon as Market opened there was a continuous selling. Market was falling left , right and center without taking any support. I was wondering why is the Market going against the global cues Then we got the news about RBI Governer press conference. So some informed people already knew about this rate hike. Hence there was a sudden selling in the markets. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points. Repo rate is the rate at which banks borrow money from RBI. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier. This slows down the growth and liquidity in the Market temporarily. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI. RBI uses that money without having to pay any interest on it. Increasing CRR means RBI is
Post a Comment
Read more

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
Post a Comment
Read more

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
Post a Comment
Read more