Skip to main content

Pre - Market Analysis (4th Feb 2022)

  1. U.S Markets closed lower Yesterday.
  2. Right now Dow Futures are higher 
  3. Asian markets are higher 
  4. SGX Nifty is up 50 Points.
  5. Yesterday was a highly volatile session for our Markets 
  6. Markets were resilient for most of the day.
  7. Last 30 minutes we had huge sell off in Nifty & Bank Nifty.
  8. The most important question is 
  9. If yesterday wasn't an expiry would we have such huge sell off yesterday?
  10. I think Yesterday's fall was partly due to expiry related issues.
  11. Those who sold put options yesterday might have faced trouble and wait for 3.30 for options to go zero.
  12. Finally when at 3 pm market isn't in their favour they sell off their Positions.
  13. This led to huge crash in last 30 minutes.
  14. Facebook declared results yesterday and the stock fell 26% due to poor results 
  15. Today Morning Amazon , Snapchat and Pinterest have come up with results and all are above estimates.
  16. All the stocks are rallying today.
  17. So this is a complete U-turn compared to yesterday.
  18. 17500 PE has 2nd highest open interest in monthly options.
  19. This should be a good support going ahead.
  20. Market is still a buy on dip and I feel yesterday's sell off was majorly due to expiry related issues.
  21. However if we break 17500 then I will turn slightly bearish.
  22. Nifty might Trade between 17480 to 17800 today.


Popular posts from this blog

Pre- Market Analysis (5th May 2022)

U.S Markets closed higher yesterday. Asian markets are higher. SGX nifty is up 150 points. Yesterday was a very tricky and unexpected session. As soon as Market opened there was a continuous selling. Market was falling left , right and center without taking any support. I was wondering why is the Market going against the global cues Then we got the news about RBI Governer press conference. So some informed people already knew about this rate hike. Hence there was a sudden selling in the markets. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points. Repo rate is the rate at which banks borrow money from RBI. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier. This slows down the growth and liquidity in the Market temporarily. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI. RBI uses that money without having to pay any interest on it. Increasing CRR means RBI is

Pre - Market Analysis (18th April 2022)

U.S Markets closed lower on Thursday. Asian markets are all lower. Dow futures are lower right now. SGX Nifty is down 250 points. Indicating a huge gap down at the open. Reason is the Global markets underperformance plus not so good corporate results. Infosys has disappointed and missed earnings by street estimates. Infy ADR was down 9% in last 2 trading sessions in U.S Hdfc bank also missed earnings but asset quality has been improved. Today we can expect huge gap down openimg in infy. Hdfc bank has limited downside left because it has already fallen a lot after the merger news. 17150-17200 is a strong support on Nifty and this is where 200 DMA kicks in. If you are a Bull this is a large support area. Markets are oversold and this offers a good opportunity to go long. Nect support comes in at 17k. If global markets keep declining then no support would work. Bank Nifty 200 DMA kicks in at 36800. Bank Nifty looks much stronger than Nifty currently as IT isn't included in

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