Skip to main content

Pre - Market Analysis (27th Jan 2020)


  1. U.S Markets were weaker on Friday.
  2. U.S Futures are also lower now.
  3. SGX Nifty is Trading near 14200.
  4. Nifty has broke his previous weeks low of 14250 and is significantly trading lower.
  5. This Indicates a negative bias in the short term.
  6. Markets are highly Volatile now.
  7. On Monday , Bank Nifty gave a swing of 500 Point 6 times.
  8. Such is the Volatility we are dealing with.
  9. There were also some Indo - China Border issues going on & maybe due to the same we witnessed sell off.
  10. Yesterday Farmers protest also turned Violent & that might create a panic today.
  11. Overall the sentiment is Bearish now.
  12. We needed this type of Correction because Markers were rallying in a straight line.
  13. These Corrections are a good sign in Bull Market and keep Bull Markers intact.
  14. The Most Important factor which will decide whether this Bull Market is to continue or not is the Union Budget.
  15. I remember in 2017 we had a massive Bull run with Nifty up 35% mid cap and small cap index were up by more than 80%.
  16. Then Arun Jaitley introduced Long term Capital Gain tax on Shares and that led to an Emergence of Bear Market.
  17. Hearing that Govt is likely to increase STT (Securities Transaction Tax) in the Budget.
  18. If this Happens , it will lead to Bear Market.
  19. Before Budget if you cannot handle Volatility and you do not have proper skills , better to stay out.
  20. Specially if you are option writer / Hedged trader.
  21. Because Budget moves are Uncertain & Volatile.
  22. I've sold 14500 CE & 13900 PE for this expiry.
  23. Also Selling Call Options of Banking stocks.
  24. Expecting Volatility to increase further before Budget.
  25. Nifty might Trade between 14040-14320 today.
  26. stockmarketadvisory.in

Comments

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

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

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