- U.S Markets closed higher Yesterday.
- Right now Dow Futures are lower.
- Asian markets are mixed.
- SGX nifty is up 70-80 points.
- Yesterday U.S GDP was announced.
- Estimates were -1.2% but it actually came in at -1.5%.
- So it was clearly worse than expected.
- In spite of the same U.S Markets rallied yesterday.
- Price action depicts that the news has already been factored in.
- Yesterday as expected Nifty traded within 15900 to 16200.
- But there were massive swings Intraday.
- As soon as Market opened with a gap up there was immediate selling.
- From 15900 Nifty made a huge short covering and rallied 300 points.
- Before yesterday for last 3 trading sessions Nifty was having recoveries of 100-150 points Intraday but all those were sold into by end of the day.
- Acticipating similar action yesterday , many traders have sold call options and these options went 7X-10X in no time.
- 16050 CE made a low of 6rs yesterday at 12 and closed at 120.
- Buyers have benefitted a lot and sellers got ruined.
- Clearly the Market is dangerous for option writing now so you have to focus on buying strategies or spreads would work the best.
- One should understand and adjust to market conditions than being stubborn.
- Nifty might Trade between 16100 to 16400 today.
- Nifty is in a range of 16k to 16400
- Big move would come only if any of this gets broken until then there's only consolidation.
- stockmarketadvisory.in
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
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