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Showing posts from November, 2020

Pre - Market Analysis (27th Nov 2020)

US markets were closed Yesterday. But U.S Markets are Trading lower now. Asian markets are mixed. SGX Nifty is up by 30 Points. Yesterday Market was highly Volatile. From 12800 the Market show up to 13k in 2nd half. November was an Excellent bull run. Expecting December to be sideways / Consolidating at least for the first week. December is a long month with 5 weekly expiry. Yesterday FII's started buying again. They've bought for 2000+ crores. Today Evening GDP data is an important Data which would be out. This is an Important Data to note. This FII buying & Bullishness cannot go on forever. Time to be a bit cautious now. Nifty might Trade between 12920-13100 today. stockmarketadvisory.in Question of the day by MRS. Shweta What is a Trading Plan & how to prepare one? A Trading plan should consist of all the Important factors , notes and key levels to note. Important news like which company is coming up results , any major event lined up etc which needs to b

Pre - Market Analysis (26th Nov 2020)

US markets ended Flat and recovered a but of losses. Asian markets too recovered a bit from the lows SGX Nifty is up by 70 points & trading close to 13k. Markets witnessed heavy profit booking Yesterday after opening at all time highs. Bank Nifty too wasn't able to sustain above 30k. This correction was a necessity because Markets were heating up. Markets were just rallying one way and this isn't good. Today is the Monthly and weekly expiry for November series. Today is going to be highly Volatile than ever. Option writers particularly selling Intraday options of today expiry should be very mindful of that. This Market cab fall or rise too quick too fast. I would advice to keep a very low to begin with when entering any new positions. Yesterday DII's have sold for 1700+ crores. FII's have bought for around 50 crores only. This is the lowest number of FII buying for whole of the November. Before this FII's were contineously buying for more than 2000 c

Pre - Market Analysis (25th Nov 2020)

Dow Jones crossed 30k Yesterday for the first time in the history. Dow Futures are also trading higher now. Asian Market's are trading higher. SGX Nifty is Trading around 13230. Bank Nifty likely to open above 30k Today. FII's have pumped in more than 30,000 crores in November series. Yesterday I mentioned in my Blog that first hour is the key and if Nifty Sustains above 13k then there's a breakout. Yesterday Markets consolidated in the First half near 13k and in second half we witnessed a sharp rally. Bank Nifty outperformed Yesterday. Usually after a Big Breakout sky is the limit. Next resistance for Nifty is 13200. We are likely to open near about this level as per SGX. This is a one sided rally in the Markets. This rally is surely the most confused rally and it can have more legs. People who missed out investing at lows are now investing their money. Funds always start to flow at the peak of the Market. When Market is at lows everybody starts to sell. So now

Pre - Market Analysis (24th Nov 2020)

US Markets closed higher Yesterday. Dow Futures are also trading higher now. Asian Markets are Mindly Positive. SGX Nifty is trading around 13k. We have 3 more days left for November Expiry. Markets are highly Volatile now. Yesterday after a big gap up we observed selling pressure but Market recovered by the end of Trading day. Bank Nifty underperformed Yesterday. HDFC bank led the Bank Nifty fall along with PSU Banks. 13k is a Resistance , Markets have reversed 3-4 times near 13k. This time the opening is near 13k , will we breakout or will we again witness selling pressure. This is a big question. Today selling at open might not work out as it worked Yesterday. Strength might continue today if Bank Nifty contributes and Participates. Reliance started to rally after a 20% correction. IT Stocks outperformed Yesterday. 13000 CE has the highest open interest , so if this level breaks then option writers who sold 13k CE will be trapped. They would cover their postions and that

Pre - Market Analysis (23rd Nov 2020)

Dow Future's from being -0.8 have turned positive to 0.4% US and European Futures are Mindly higher. SGX Nifty is Trading around 12970. Indicating gap up around 100 Points. Volatility is too high in the Markets now. On Friday Nifty rested 12700 and almost recovered 200 Points in about 2 hours. Markets are moving sideways in a range but with Big Volatility. This Gap up of 100 Points isnt Justifiable to me. I'll observe the Markets after opening and see the price action. If Nifty isn't showing strength near 13k my first trade would be to take a short position with around 50 point stoploss. If 13k is crossed , sustained and my Stoploss is triggered I would become Bullish. 13k has added big open interest so it will act as a Resistance. This week we have weekly + Monthly Expiry both together. So Volatility would be much more higher. You need to risk a substantial amount of risk to make good money in these kind of Markets. Banking sector would be in focus today due to

Pre - Market Analysis (20th November 2020)

US markets closed higher from their lows. Dow Futures are Trading lower now. Asian Market's are Trading higher. SGX Nifty is Trading around 12830. Yesterday it was a highly Volatile Expiry. First Market recovered from lows and went near highs of the day around 12960 then profit booking was witnessed. Due to expiry issues put writers got trapped and we Witnessed a big sell off. There are 5 working days remaining for November expiry now. Corrections like Yesterday are a buying Opportunity in a Rising Bull Market. Stimulus talks have started in U.S Negotiation seems to be going on. Indian Stimulus 2.0 was announced but it was like a "Girl Crush". When did it arrive , when did it get completed. Nobody knows. Serium Institute of India has come up with a Vaccine news and it states as follows: Serum Institute of India's CEO Adar Poonawalla says Oxford COVID-19 vaccine should be available for healthcare workers, elderly people by around Feb 2021 and by April for g

Pre - Market Analysis (19th November 2020)

US markets closed a percent lower Yesterday. This was a Normal profit booking considering such heavy rally in November series. Pfizer announced that their Vaccine is 95% effective, earlier they said it is 90%. Pfizer and Moderna are competing so hard like Messi & Ronaldo in Football. Pfizer has claimed that they accuracy more than that of which Moderna was Claiming. Asian Market's are all witnessing profit booking. SGX Nifty is Down 100 Points and Trading near 12870. Today is weekly expiry so things might become Volatile. 12800 is a short term support on Nifty. If that gets violated then sell off will accentuate. Expecting today's Expiry to be sideways / choppy. Market will give you a feeling that it will break resistance but it won't. You will feel support will get taken out but it won't sustain. Expecting this to be the way ahead for today. India has not tested even 10% of the Population and has around 90L cases. Situation might worsen if Vaccine is de

Pre - Market Analysis (18th Nov 2020)

US markets closed lower but recovered a lot more from lows. Asian markets are mostly Flat. SGX Nifty is around 12880 almost near Yesterday closing. Yesterday Markets were Volatile in first half but recovered in second half. India VIX was up 7% in first half Yesterday. Reliance below 2000 now. I've observed in past few months , Reliance doesn't sustain below 2000 for long. As soon as it goes below 2k buying Emerges. Banking Stocks are in a league of their own. Bank Nifty outperforming Nifty now. Also carrying NIFTY along with it. When Bank Nifty dominates Nifty Volatility is expected. As Bank Nifty is a Heavy weight. FII's buying heavily for 8th Straight trading Session. They have bought more than 35k crore now in last 8 Trading sessions. As long as FII's continue to buy in such huge Numbers , Markets will not correct heavily. Yesterday was a good day of Consolidation. Short term range for Nifty is between 12800-13000. Expect this expiry to be between this ra

Pre - Market Analysis (17th November 2020)

US markets closed around a Percent higher Yesterday. Asian Markets are all Trading higher. SGX Nifty hit a high of 12930 Yesterday but now trading near 12880. Moderna announced that their vaccine is effective 94.5%. There is a race going on between Moderna & Pfizer for the Vaccine. Pfizer's Vaccine was 90% effective and required to be stored in Negative 70 Degrees Temperature. Moderna Vaccine as per reports doesn't require such Temperature. How Accurate are the Claims that is the Most Important Question now. Only Time Will say. I have been expecting a Consolidation after a 1100 Point rally in Nifty but Markets are not stopping their upmove. 13000 is the Resistance but the rally which is going on in the Markets no Resistance seems to be working. If Market goes up too fast the fall will be too severe too whenever it comes. So a small Consolidation / Correction would make it much stronger for Bulls. We are currently in a Global rally. Indian Markets are also Contri

Understanding Various Types of Orders

An order is an instruction on how and when to buy or sell you send to your broker. There are several different types of orders a trader and investor can use to execute their trade based on their goals. You may want to get in at any price or out at any price. You could want to only buy or sell at a specific price and do nothing if the market does not reach that price.  Here are the primary types of market orders used to enter or exit a trade.  A market order is used to immediately buy or sell a stock or asset. With this type of order you will immediately get an execution to buy or sell at the current market bid or ask quote. You usually get a fast fill but the price is not guaranteed and the slippage from your expected price and your fill will be based on volatility, liquidity, and the speed of your broker.  A limit order specifies the exact buy or sell price that the trader wants the trade executed at. It must be the limit price asked for or better or no trade is transacted

Pre - Market Analysis (13th November 2020)

US markets witnessed some Profit booking Yesterday. Fed Chairman Mr. Powell pointed out Yesterday that economy outlook in Uncertain. This is due to Corona Virus cases surging at its peak in U.S Vaccine news is not quite a big news. It has come to know that Vaccine requires Minus 70 Degrees temperature to be stored. Which is quite difficult in Indian Environment. Pfizer management also sold 2% stake after the Vaccine news. This gives a Negative hint to the Markets. One Strategy I'm applying is whenever there is Vaccine news & Markets are rallying. I'm selling the same. Vaccine with 100% tested results according to me isn't possible for at least 2 years from today. I've done a lot of research on this and it's strictly my view. Remember few months before, Moderna promoters also sold just after their announcement of Vaccine. So this news is just to make their respective share prices rise by making fool out of people. SGX Nifty is down by 80 Points. Marke

Pre - Market Analysis (11th Nov 2020)

US markets were highly Volatile Yesterday. At went time Dow Jones was up 300 Points but then it closed Flat. We have witnessed more than 1200 Point rally for November series upto now. Last Month also this rally was witnessed at the beginning of the Month and then we witnessed a Consolidation for the rest of the Month. Expecting the same for this Month as well. High Probability of Consolidation for the rest of the series. Range would be between 12400-13000. SGX Nifty is Trading near 12700. Financial Stocks have been Outperforming Significantly now. Bank Nifty has Rallied 5000 Points in last 10 trading Sessions. So every dip from now is a buying Opportunity. Markets are ignoring all the negative news and just climbing the walls of worry. All this is due to low interest rates. High inflows are coming into the Market. Pfizer announced that it has successfully tested Corona Virus vaccine. All results show that it has gained more than 90% results in defeating the virus. Sector ro

Pre - Market Analysis (10th November 2020)

US markets closed higher. Dow Future's down 100 Points now. At highest point, Dow was up 1500 points at one point. SGX Nifty touched 12780. But now they have cooled off. This is a post Elections rally. Joe Biden winning favours U.S market due to which we witness such sharp rallies. Expecting some Consolidation now in the Markets. SGX Nifty is up 200 Points now. How long will this rally sustain? Can we touch to higher highs? Time will say. But i expect a Consolidation now for few weeks. Nifty is up 1000 Points in 6-7 trading sessions. This is a stellar rally. Trend is still up. But im not a buyer now. I won't chase these gap ups. Market is opening with Big gap ups now a days and consolidating for the rest of the day. This is happening from almost 2 Months now. Intraday traders are not getting another serious. Those who have the guts to carry overnight trades are making money if they are on the right side of the game. Call writers are getting trapped with such stellar

Pre - Market Analysis (9th November 2020)

Joe Biden has won US Elections this Weekend. Trump has been Protesting but it doesn't matter. It has Officially been declared now. U.S Markets are Celebrating Joe Bidens Victory. Asian Markets are Trading higher. SGX Nifty hit an all time high of 12460. Today we are going to open near all time high. This has been a Fantastic rally from 7500 for Nifty. Market has hit all time high in no time. So the Question is what next? Will Nifty touch 15k? One thing I've Learned based from my Experience is all time highs work as Resistances. So now at open its better to exit longs and wait. HNI Investors and Long Term Investors would prefer to book profits at higher levels. I will be exiting my Swing longs and would be just observing markets today. It's definitely not the time for fresh buy. Delhi has been gripping with 2nd wave of Corona , GDP at all time low. So things are not upto the Mark even now. Bulls, time to Celebrate book profits and let Market say you what's co

Pre - Market Analysis (6th November 2020)

US markets closed about 2% higher Yesterday. Asian markets are also Trading higher. SGX Nifty is almost flat. Markets have witnessed a fantastic rally in past few sessions. Now we are very close to all time highs. Nifty is just 2% away from all time highs whereas Bank Nifty around 20-22%. No matter whatever happening in U.S our Markets are rallying. It seems like we have decided not to go lower. Once there is a clarity and a possible announcement of Stimulus, we have every chance of hitting all time high in this series. Yesterday India VIX crashed about 9%. But US VIX crashed One thirds in last 2 trading sessions. India VIX below 30 is a good sign for option sellers. FIIs have started buying whereas DII's continue to sell. Biden has a big advantage over Trump now. Trump has approached the Court but it doesn't seem to be working yet. This is a buy on dip Market now. We have closed decisively above 12k. Every dip needs to be bought into. Nifty might Trade between 1204

Pre - Market Analysis (5th November 2020)

Yesterday night , Dow Jones closed 650 Points higher. SGX Nifty was around 12170 at that time. Currently Dow Futures are flat. SGX Nifty around 12080. U.S Elections have become a big drama Currently. Results have not come and still counting in underway. Yesterday Trump Announced that he would go Supreme Court to stop counting the cotes and he should be addressed as a winner. As soon as this news came markets fell. Trump was also leading Biden at one point. But this fall was immediately bought into and Nifty almost closed at the highest point of the day. SBI posted good results Yesterday. Finally it seems the worst is over for them. Today also our Markets will be rules by U.S Election Verdict and European Markets which open around 1 pm. There will be high Volatility today as we are opening above 12k. If we sustain 12k and there's no incremental Negative news then we should close at the highs of the day. If we start inching below 12k with global markets pressure then we c

Pre - Market Analysis (4th November 2020)

U.S Markets closed 2% higher Yesterday. Markets expecting Biden to give a clean sweep to Trump. Today is the Final day of the Election. Dow Futures are fluctuating quite rapidly. There will be huge Volatility going ahead. Today only U S Election Verdict will dominate the Markets. SGX Nifty is Trading near 11770. Bank Nifty has been on a roll in last 2 years and has gained more than 1500 Points in past 2 days. By 10.30 AM things should be clear regarding the Election Verdict. If there is a clear winner markets will take Positively. If it isn't the case then Markets do not like Uncertainty & it will have an adverse impact on our Markets. How will the Markets react relating to Election Verdict is also an Uncertainty in its own. Those who track Global Markets they should only trade today. Others it's better to step out. If there's a clear winner Volatility will also reduce. Nifty might Trade between 11640-11920 today. Wide range because of Election Verdict. stoc

Pre - Market Analysis (3rd November 2020)

US markets closed more than a percent higher Yesterday. Asian markets are all in Green . SGX Nifty at weekly high & Trading near 11750. Dow Futures are now Positive. Yesterday Bank Nifty was up more than 1000 Points. This rally was without any news etc. There were sub par results from ICICI Bank etc which might have led to big Short covering. Pre election volatility in U.S Markets is being witnessed. FII's have started buying after being net sellers for quite a long time. DII's have turned sellers. The big day is here now. U.S Elections the most important event on which the whole world keeps looking at. Trump might be slightly Disadvantageous due to risking lives to many Americans in this Pandemic. Corona Virus was not seriously handled by his Administration. It looks like Market favours Joe Biden to win the Election. Markets are Anti Trump. However Election moves are very Difficult to predict. Outcome is much Difficult to predict. Indian Markets are rangebound

Pre - Market Analysis (2nd November 2020)

US markets closed lower on Friday. Asian Markets have recovered from their lows. Dow Futures is positive now. SGX Nifty is trading around 11670. Corona Virus 2nd wave is scaring the stock Markets. All European Countries have been resorted into Nation wide lockdowns. India is currently handling the situation well as per numbers reported. But the day is not far when we see 2nd Wave of Corona virus in our country. All the Countries when the Cases were reducing became complecant and reduced restrictions. Then witnessed huge spike in Corona virus cases. I think India is on that terrain now. I hope I'm wrong & India doesn't get 2nd wave of Corona Virus. Over the weekend, England announced lockdown. U.S Reported the highest single day cases since the pandemic. They also have Elections coming up. It's fair to way , Trump Administration couldn't handle the pandemic well. This might impact him highly during elections. Global Markets are negative and we have negati