- US markets closed higher Yesterday.
- But now U.S Futures are down 0.5%
- Asian Markets are Flat.
- SGX Nifty is Trading around 13150.
- Our Markets are Blindly following the Global Markets.
- Yesterday U.S Futures were higher so we closed at high point of the day.
- This is happening from quite some time now.
- FII's haven't stopped their buying.
- Yesterday also they have bought for 3200 crores.
- DII's booking profits at higher levels.
- Yesterday many traders expected that Volumes would reduce considering SEBI peak margin norms.
- But surprisingly yesterday volumes were adjacent to the regular volumes.
- Brokers are taking some time in getting adjusted to the new norms.
- We might consolidate within the range of 13000 to 13250 for this expiry.
- Nifty might Trade between 13060-13240 today.
- stockmarketadvisory.in
- Question of the day by MR. Steveraj.
- How do options work? Like If I bought a Call Option when do I make profit and when I sell option how do I make profit ?
- Let's take an Example , Say you are Bullish and you are expecting Markets to go higher.
- You have bought 13200 CE Nifty at 50rs & you intend to hold this until expiry.
- Your profitability for this will begin after Nifty crosses 13250 (13200 + Premium (50rs)
- Say Nifty expires at 13280 your Net profit per lot is 30rs & if it expires at 13220 you lose 30rs.
- Say you are Bearish and you sell 13200 CE at rs 50. Now your Breakeven for this is 13250.
- Say Nifty expires at 13280 , you lose 30rs and if Nifty expires at 13220 you make 30rs.
- Without Understanding this basic structure many traders buy and sell options which isn't advisable.
- It's Important to Gain knowledge and Understanding before Practical IMPLEMENTATION.
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
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