Skip to main content

Pre - Market Analysis (27th December 2021)

  1. U.S Markets were closed on Friday.
  2. Most of the Global Markets were shut due to Christmas and New Year Celebrations.
  3. SGX Nifty is down 30 points.
  4. On Friday our Markets were under severe pressure.
  5. As soon as we opened , there was a big selling Nifty broke 17k.
  6. 16900 was tested and there was a good short covering.
  7. Everything happened with Volatility and VIX was higher 3%.
  8. I've seen many times in the past , as soon as VIX is near 15 it goes higher.
  9. VIX has not been below 15 in past 4 Months.
  10. This time as well im expecting the same.
  11. Both the FII's and DII's were net sellers on Friday.
  12. Though the amounts and volumes were less as it might be due to profit booking.
  13. Im expecting the Volatility to continue for December last week.
  14. 4 trading sessions are left and 17k strike option has the highest open interest.
  15. 300 was the combined premium so range comes between 16700 to 17300.
  16. 17150 is the 20 day DMA and is likely to act as resistance 
  17. Friday's low of 16900 should come in handy as support for the day 
  18. Uncertainty around RBL Bank should see some pressure in Bank Nifty and this could impact Nifty as well.
  19. Though RBL Bank doesn't have much weightage but the sentimental hit would be big.
  20. Nifty might Trade between 16840 to 17100 today.


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