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Pre - Market Analysis (23rd July 2021)

  1. U.S Markets closed slightly higher Yesterday.
  2. Dow Futures are now flat.
  3. SGX Nifty is almost flat.
  4. Asian Markets are mixed.
  5. Yesterday we witnessed a huge gap up on both the indices and there was a follow through of the rally during the day.
  6. All might have various theories as to why Market fell , why It rose etc.
  7. My Simple understanding we are in a ranging Market on Nifty.
  8. The range is 15550 to 15950.
  9. This is a tight range of 400 points.
  10. Nifty is trading within this range and giving wild moves.
  11. It's been 4 weeks for July series and we have been trading within this range.
  12. Usually Markets make a big move on the last week so we might be in for some surprises.
  13. I do not see reason to be Bearish for traders.
  14. Bank Nifty is the weak link for the Bulls.
  15. Yesterday as well , Bank Nifty rally fizzled out.
  16. We have 2 very important results lined up.
  17. Reliance Industries and ICICI Bank.
  18. Reliance Industries has the leading weightage in Nifty and ICICI Bank has the 2nd largest weightage in Bank Nifty.
  19. Both these results will determine the future course of events for Markets.
  20. Until then I expect Markets to be Rangebound.
  21. Yesterday I pointed out that India VIX should fall and the same has happened.
  22. India VIX crashed 10% yesterday and closed below 12.
  23. Nifty might Trade between 15780 to 15920 today.
  24. In such low premium environment it's better to do Ratio Spreads , Calendar Spreads , Bull & Bear Spreads and avoid selling naked options.
  25. Vega effect is highest in last week of expiry.


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Pre - Market Analysis (18th April 2022)

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Pre - Market Analysis (11th April 2022)

U.S Markets closed mixed on Friday. Dow Jones closed slightly higher. S&P 500 was flat and Nasdaq is very weak. Right now , Dow futures are lower. SGX Nifty is down 100 points. So we are in for a gap down opening today. Friday was a quite interesting day. As expected , RBI policy was a status quo. Nifty broke Thursday low of 17640 and traded below for quite some time. And then for a short squeeze. All the shorts were trapped and we had a big rally. Most importantly , India VIX was down 7% on Friday. I expect markets to consolidate between 17600 to 18100 for a while. I do not see a reason to be excessively bearish now. Markets went from 17700 to 18100 because of hdfc twins. And then crashed to 17600 because of these both stocks. These both stocks have given up all of their gains and are back to Pre merger levels. There is very limited downside now for these stocks and expecting these stocks to bottom out soon 17500 to 17600 is a strong buy zone on Nifty. Also earnings se