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Showing posts from February, 2021

Pre - Market Analysis (26th Feb 2020)

US markets fell, worst fall since October 2020. Worst Gap down hinting for SGX Nifty today. 300 Point Gap down we are likely to open into. So the logic is simple , selling again after a gap down doesn't make sense now it's the time to buy. Buy big gap downs sell big gap ups , that's where risk - reward is in your favour. So I'm interested to buy this gap down on a Positional basis by keeping stoploss of 14650 which is last weeks low. Volatility will be high today. India VIX is likely to trade above 30. Do not worry about Global issues and worry of this gap down. Trend will always sustain and it sustains for longer term. Many People are talking about Bear Market and trend reversal. I don't think so. Trends don't change so easily and so quickly. So forget about that. Nifty might Trade between 14760-15000 today.

Pre - Market Analysis (25th Feb 2021)

U.S Markets closed mixed Yesterday. Dow Futures were Positive yesterday when indian Markets were opened. But on the close to close basis it closed where it was when our Markets opened. Yesterday markets closed at the high due to short covering in Pvt Sector Banks. FM announced tat PSU companies can keep accounts with Pvt Sector Banks. Earlier PSU Companies were asked to keep accounts only with PSU Banks. This led to short covering rally in Pvt Sector Banks. Pvt sector banks and NBFC Companies led the rally Yesterday. Yesterday due to Technical Glitch many People lost huge. Also there was all kinds of confusion & problems regarding trading Position / square off etc. There was no proper communication from NSE. Along with Indian markets, entire world markets recovered. US makets closed higher. Asian markets are higher. SGX Nifty is trading around 15045. SGX indicating opening above 15k today. This last week of Feb has been highly Volatile. Markets are all over the place. T

Pre - Market Analysis (24th Feb 2021)

US markets closed Flat Yesterday. U.S Markets have closed with a slightly Positive bias. Asian Markets are also Mixed. SGX Nifty is Slightly higher. Dow Jones has recovered more than 350 Points from Intraday low. At one Point , the selling pressure was really severe. SGX Nifty is up 80 Points. Yesterday too , Markets were highly Volatile. They were all over the Place. Markets will continue to remain highly Volatile as its Monthly expiry week now. As of now it doesn't appear a clear Direction for me. Markets are neither Bullish nor Bearish. Markets are Consolidating with high Volatility. Good news is that India VIX has reduced Yesterday. Usually as per past Experience Wednesdays are highly Volatile. Today also Markets are likely to remain highly Volatile. I expect Nifty to expire between 14600 & 15000. But I may be wrong too as the way Markets are moving , analysing direction is difficult. I'd look to sell Call Option near 15k for Nifty. Look to sell Put near 146

Pre - Market Analysis (23rd Feb 2021)

US markets closed Flat Yesterday. Asian Markets are mostly Trading higher now. SGX Nifty is up 100 Points. This Gap up is likely to be sold into again. Technology stocks are seeing huge selling pressure globally. TCS has fell more than 10% in last few weeks. Yesterday, Asian markets opened positive and then before our markets open, sold off. Today, Asian markets opened lower but recovering before our markets open. This 100 Point gap up is an easy sell trade. These are good risk reward trades. Market is highly bearish now. But also a good short coveting may creep in. India VIX was up 15% Yesterday. Put Option Premiums rose Significantly. One thing is for sure , Volatility will be huge now. Nifty might Trade between 14620-14880 today.

Pre - Market Analysis (22nd Feb 2021)

U.S Markets were Slightly lower on Friday. Currently U.S Futures are Mindly lower. Asian Markets are Slightly Positive. SGX Nifty is Trading near 15k. On Friday , we witnessed a massive fall Intraday. It was an all round selling across all the Sectors and stocks. I've been observing , Monthly Expiry are highly Volatile. FII's didn't buy on Friday and DII's have been selling Relentlessly. This led to a greater fall. I have been selling Call Options of Banking stocks and 15300 CE & 15400 CE for Feb Expiry. Not expecting Markets to cross 15200-15250 for this Expiry. Markets are looking very weak in the short term. There are only 4 Trading sessions left for this expiry so Time decay will be much faster. Global Markets are also in a Consolidation with a slightly Negative bias. Any rally has been sold into Globally. So Temporarily I feel Markets have been topped out near 15250. This is the short term situation. Any rally needs to be sold into for Feb series. I

Pre - Market Analysis (18th Feb 2020)

US markets closed flat Yesterday. Markets all over the World are in a Consolidation phase. Consolidation is the need of the hour for Bulls. Consolidations and Corrections in Bull Markets bring more Strength and Pace to the Markets. Asian markets are mostly down. SGX Nifty is up 40 points. 15260 seems to a strong resistance for our Markets now. We have been failing to break through the range. We have broke out of the range and went higher than 15260 level but failed to sustain. 15300 Straddle has the highest open interest. So expiry can be expected near this level unless another big move / spike appears. HDFC Twins were weak Yesterday. They contributed more to the downside. On the other hand , PSU Bank index rallied 6% Yesterday. PSU Banks kept the Bank Nifty breadth intact. The reason is that there were some restrictions announced by RBI for Housing Finance Companies. Currently it seems like all the sectors and stocks have been peaked out. Market needs fresh news or Trigger

Pre - Market Analysis (17th Feb 2020)

US markets ended on a Flat note Yesterday. Asian Markets are also in Consolidation phase. SGX Nifty is Trading around 12270. Yesterday our Markets opened at fresh highs but we witnessed good profit booking Intraday. These sort of dips and Corrections offer a good Opportunity to build longs and re enter. In Bull Markets dips get bought into much faster. Feb first week we witnessed a fantastic rally in our Markets. After that we are into Consolidation phase. Uptrend is still intact while in Consolidation. India VIX was slightly higher Yesterday due to correction which had happened Intraday. Usually on Wednesdays India VIX stays higher and Volatility is more. Expecting this Expiry between 15040-15420. Highest Open Interest is in 15000 PE and 15400 CE. That's the reason why we witnessed good profit booking Yesterday at higher levels. I would be looking to trade in Extreme levels of the range. DII's have been Contineously selling this week. Actually , the Selling Number

Pre - Market Analysis (12th Feb 2020)

US markets closed Flat Yesterday. Asian markets are trading with negative bias. Chinese Markets are closed for a week. SGX Nifty is In Flat Terrain. Markets all over the world are consolidating at higher levels. Indian Markets are also the same. An Agreement has been signed at Indo - China Border to control the Military forces. This will trigger a Postive sentiment over the Globe. Reliance Witnessed a good short covering rally Yesterday. If Reliance continues its momentum then downside for Nifty is almost NIL. India VIX cooled off a bit Yesterday. Over the Budget India VIX kept increasing. Yesterday's fall in India VIX indicating the fear is reducing at higher levels. Also Markets have been Consolidating so this is also contributing for a fall in India VIX. Consolidation is also a Positive sign for the Bulls. ITC has come up with decent results Yesterday. FMCG division in many areas witnessed double digit growth. It would be interesting to see how the stock reacts today

Pre - Market Analysis (11th Feb 2020)

US markets closed flat Yesterday. Markets all over the World are in a Consolidation mode currently. Many Asian markets are closed today for Holiday. SGX Nifty is down by 40 Points and near 15100. Yesterday we witnessed a highly Volatile trading session. Nifty was down 100 then in Negative then Negative 100 and then finally closed in Green. Yesterday I mentioned 15k as a critical support and it worked out well. Markets have rallied non stop after budget so they require a breather before rallying further. Consolidation keeps the market strength in check and bulls will be motivated by this. My Expiry range which I mentioned yesterday was 15k to 15400. Today I expect Nifty to expire between 14960 to 15240. Today may not be that Volatile as it was Yesterday. Expecting first half to be normal and Volatility may kick in for the second half of trading session. Bank Nifty finding resistance around 36500-36600. Markets closed almost flat for two days. Clearly 15270 is a strong resist

Pre - Market Analysis (10th Feb 2020)

US markets closed flat. Asian markets are mindly higher. SGX Nifty is up 30-40 Points. Yesterday Nifty was up 140 Points at one point of time. In last hour we witnessed severe profit booking. Bank Nifty fell 600 Points in last hour. Nifty fell 200 Points. This can be construed as Markets are unwilling to go much higher from here. Also the downside in limited. Yesterday was a good Consolidation day. Nifty almost closed where it had opened. Going forward there would be Consolidation with Volatility. Few frontline heavyweights contributed to the fall Yesterday. ITC and Reliance fell 2-3% each. Bank Nifty as always is a highly Volatile counter. 15000 is a good support for Nifty. 15400 is a stiff resistance. I expect Nifty to expire somewhere between 15000 to 15400 for this expiry. There is a good amount of Put writing in 15000 PE and 15400 CE. Those who sold Put option will always look for cover and they sell call option too. Wednesdays can be highly Volatile. So use Volatility

Pre - Market Analysis (9th Feb 2020)

US markets closed yet at record highs. Asian Markets are flat. Although U.S jobs data wasn't upto the Mark , Markets are keeping their Momentum alive. The trend is: Market opens with a gap up , some profit booking comes and it gets bought into and Ultimately Market closes higher. This is the Scenario from past few Months. Good Corporate results , Vaccination and Passing of Stimulus are key Positives. NIFTY has rallied from 13600 to 15150 in 6 trading sessions. Bank Nifty from 30000 to 36000 in the same period. Auto Stocks also started performing Yesterday. Maybe due to Opening of Tesla Electric Plant in India , these Petroleum and Diesel Automobile companies are under pressure. 15500 Straddle has the highest open interest in Monthly Options. Expecting Markets to Consolidate near 15500 which is also 400 Points away from current level. So we have an upside potential of another 400 Points on NIFTY from here. Bank Nifty 37500 Straddle has highest open interest. So this leve

Pre - Market Analysis (8th Feb 2020)

US markets closed higher on Friday. Asian Markets are also trading higher. SGX Nifty is up 70 Points. U.S Markets closed higher in Stimulus hope as the Jobs data was not upto the Mark. Over the weekend, US passed Stimulus Bill of US1.9 Trillion. This is creating a very Positive sentiment in the whole World Markets. Indian Markets are on a Dream Run since last week. Bank Nifty up 15% and Nifty up 10-12%. SBI up 40% in a week. Never ever this has happened before. 15k is a Psychological Resistance and once this is taken out we can see more higher levels soon. Markets won't rally as fast as they were from last week , the pace will surely reduce. But yes there is more to come after 15k. Not immediately but maybe in due time.  ITC , the Sleeping Elephant has also woke up now. It is set to declare results this week. Auto Stocks are Underperforming now. This is the only sector not participated & haven't contribute majorly in the rally. Put Options are trading at high Pr