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Pre - Market Analysis (30th March 2021)

  1. US markets closed a percent higher on Friday.
  2. Yesterday our Markets were closed but World Markets were open.
  3. U.S Markets closed mixed Yesterday.
  4. SGX Nifty is now up 160 Points.
  5. So we are likely to open with a big gap up today.
  6. Asian markets are mostly higher.
  7. US 10 year bond yield above 1.7%.
  8. Bond Yield above 1.5% is a worrying sign for the Emerging Markets.
  9. Covid cases are also increasing across India.
  10. FII's have turned net sellers.
  11. So looking at all these paramaters I feel this is the time to sell Call Options against this gap up.
  12. This gap up has no Meaning.
  13. There are some disturbing things going on in U.S Markets.
  14. On Friday, Institutions have sold 20 billion worth of shares due to forced liquidation of Archego.
  15. You may remember what happened in U.S when there were disturbances due to GameStop.
  16. Indian Markets also fell at that time.
  17. I feel unless the things settle down in U.S now our Markets would also be weak.
  18. On Friday India VIX crashed more than 10% and option Premiums fell significantly.
  19. As 3 days are only left for expiry the premiums are lower.
  20. One could sell 15100 CE at open and on declines one could sell 14250 PE.
  21. Only those who know how to make appropriate adjustments and have skill to move with Market can take above trades with hedge to reduce margin.
  22. Whenever VIX goes below 20 Volatility comes back again.
  23. So expecting today and tomorrow to be fairly Volatile sessions.
  24. Nifty might Trade between 14680 to 14920 today.


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