Skip to main content

Pre - Market Analysis (25th Nov 2020)


  1. Dow Jones crossed 30k Yesterday for the first time in the history.
  2. Dow Futures are also trading higher now.
  3. Asian Market's are trading higher.
  4. SGX Nifty is Trading around 13230.
  5. Bank Nifty likely to open above 30k Today.
  6. FII's have pumped in more than 30,000 crores in November series.
  7. Yesterday I mentioned in my Blog that first hour is the key and if Nifty Sustains above 13k then there's a breakout.
  8. Yesterday Markets consolidated in the First half near 13k and in second half we witnessed a sharp rally.
  9. Bank Nifty outperformed Yesterday.
  10. Usually after a Big Breakout sky is the limit.
  11. Next resistance for Nifty is 13200.
  12. We are likely to open near about this level as per SGX.
  13. This is a one sided rally in the Markets.
  14. This rally is surely the most confused rally and it can have more legs.
  15. People who missed out investing at lows are now investing their money.
  16. Funds always start to flow at the peak of the Market.
  17. When Market is at lows everybody starts to sell.
  18. So now there would be more inflow of funds.
  19. As long as funds tap is open and Global markets keep Rallying better not to expect a big Correction.
  20. Big correction will come it has to come but it will happen in its own time.
  21. When it happens I will update about that.
  22. Until then it's a strong strong bull Market which is rattling all the Shorts.
  23. Me and my Clients have carried long Positions.
  24. So if opening today is anywhere around what SGX is suggesting.
  25. We will book our longs at open.
  26. If you havent carried longs then I won't advice you to chase such big gap ups.
  27. Wait for a 50-60 point dip on Nifty , 150-200 point dip on Bank Nifty to enter.
  28. Nifty might Trade between 13080-13260 today.
  29. stockmarketadvisory.in
  30. Question of the day asked by MR .Sudesh Joshi : Effect of India VIX on Stock Market and on Option Prices
  31. India VIX is known as Indian Volatility Index. It Generally depicts the Yearly Movement of Nifty. For Example India VIX is near 20 now. So Nifty for next Year can go up or down by 20%. Remember VIX was at 86 in March when Nifty was around 7500. We have gained back more than 60-70%.
  32. There is an Incorrect notion that VIX goes higher only in a falling Market. This is incorrect. VIX can go high even in rising Market. Higher VIX indicates higher option prices where option sellers look to initiate straddles etc. Lower VIX indicates low option prices where buyers look to buy options.

Comments

Post a Comment

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
24 comments
Read more

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
Post a Comment
Read more

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
2 comments
Read more