All you Need to know about Stock Markets

U.S Markets closed flat yesterday. Right now Dow futures are slightly lower SGX nifty is higher & trading at 15750. Asian markets are lower. Markets all over the World are in a consolidation phase. Markets not reacting negatively to headline news is in itself a positive outcome. June also we are closing negative. Every month since November we are closing negative. This indicates a bear Market. The trend is towards downside. Yesterday the GDP expectations were -1.5%. But the actual figure came at -1.6%. Even then there was not much swing in U.S Market. Infact U.S VIX closed lower yesterday. India VIX refuces to fall gradually. Someday there will be huge gap up & India VIX will directly fall 10% at open. Not giving anybody any Opportunity to enter. The Large gap ups and gap downs have been another problem to tackle now. Last 2 days Nifty has been trading in a narrow range of 150 points. 15700 to 15850 has been the range. I would wait for a break below 15700 to short I

U.S Markets crashed yesterday. Right now Dow futures are slightly higher. SGX nifty is higher & trading at 15700. Asian markets are mixed. Yesterday as well there was a huge gap up. Today as well we are about to open lower. Yesterday as soon as Markets opened there was a recovery towards the later part of the day. Our market is reacting totally to the Macro news and events. Today we are set to have U.S GDP data in the evening. This will drive the further positioning of the traders. Yesterday during the Market hours Dow futures recovered  European markets inched higher and then short covering began in our markets. Today's gap down would once again test the option sellers. Huge Open interest was added yesterday in put options. 15600 and 15700 PE were written aggressively. In this Kinda scenario it's better to keep as lighter positions as possible. As this gap up gap down is trapping the traders. Plus we have an event tonight. This Volatility in our markets is due

U.S Markets closed mixed yesterday. Right now Dow futures slightly lower. SGX nifty is higher & trading at 15750. Yesterday it was majorly a Consolidation in the Global markets. Asian markets are slightly lower. After such a huge short covering rally consolidation is necessary to keep momentum intact. So this looks more of a consolidation and not of a trend reversal  U.S GDP data is going to be out tomorrow. Perhaps market is waiting for the same and hence theres cautiousness. Most importantly , U.S VIX fell yesterday. In spite of U.S VIX falling , India VIX keeps on going higher. Yesterday as well in a Bullish market India VIX was higher. In U.S the VIX falls gradually but in India it doesn't fall for few days and then goes down at one go. FII's are on a selling spree and now almost every market participant knows the same  Bank Nifty underperformed Nifty yesterday. This is because bank Nifty has outperformed Nifty in the last week  So now a profit booking was o

U.S Markets closed higher on Friday. Right now Dow futures are higher. SGX nifty is higher & trading at 15900. Markets all over the World are witnessing a short covering rally. All the Markets are up and there's greenery everywhere. There's a saying that when markets go higher on bad news that's when it has bottomed out. Even after persistsnt Inflation issue pointed by Fed markets have been moving higher from last 4 trading sessions. Is the worst already discounted or more is yet to come? I don't think the worst is already discounted. This could again be a dead cat bounce like many bounces happened in the past. 16000 CE has highest open interest. For this expiry. So if you are long this is a good place to take off profits. Also after such huge gap up going long doesn't favour risk reward. There are 4 Trading days left for expiry. So the Theta decay would be quick. 15700 to 16000 opens up now  Markets closed at 15700 on Friday. Whenever there are larg

Options Vega Explained Option contract prices will increase as the probabilities of them expiring in-the-money are greater and will go down as the probabilities of them expiring in-the-money decreases. As options get closer to being in-the-money they capture more of their underlying assets move, as they get farther away from being in-the-money they capture less of their underlying assets move. High volatility increases the odds of an option having the ability to be in-the-money on expiration. Extreme volatility also increases the risk of loss to the option seller with a strong adverse move and an option price will increase to account for the higher risk and compensate the option seller for this risk. Vega measures an option’s sensitivity when there are changes in volatility of the underlying asset. Option vega is the measure of the amount of money per underlying share that an option contract value will gain or lose as price volatility rises or drops by 1 percentage point. B

Options Delta Meaning What is delta in options? The delta of an option is part of the option Greek pricing model and prices in the magnitude of the move in the underlier that the option will capture based on the odds of the option expiring in-the-money. Option delta is represented as the velocity of a price change in an option with a 1 point move in the underlying asset and is displayed as a decimal value most of the time. Delta values range between 0 and 1 for call options and -1 to 0 for put options. Delta quantifies the amount an option contract is exposed to moves in the price of the underlying asset. Delta values are set in a range of a positive 1.0 to a negative -1.0, some express a .50 Delta by saying 50. The delta of an option is the sensitivity of an option price to movement in relation to changes in the price of the underlying asset. It tells option traders how much the price of the option will change as the underlying stock or security moves. A deep i

U.S Markets closed higher yesterday. Right now Dow futures are higher. SGX nifty is higher  Yesterday it was a highly Volatile expiry. Generally on volatile days we get a 2 way swing  But what was surprising is it was a 3 way swing yesterday. Nifty from 15400 went towards 15630 then fell back to 15400 only to hit 15600 again. These types of volatility happen generally on monthly expiry. This is because of huge volumes plus futures expiry also lead to such Volatility. Now a days weekly expirys have been witnessing such Volatility. This Volatility many say is good for option buyers & bad for option sellers etc. I don't agree to this. Volatility is not good for anybody. Yesterday buyers who expected more upmove / downmove also got trapped  In such times it makes sense to wait till Volatility subsides  Until then it's better to trade only small positions and most of it Intraday. Auto Stocks are looking to have bottomed out. They have been moving higher. Other sector

U.S Markets closed flat Yesterday. Right now Dow futures are lower. SGX nifty is flat. Yesterday it was a downward trending day. Nifty found resistance near 15700 on Tuesday and then weakened from these levels. 15400 was a good support yesterday. So today the most important level to watch out is 15400. One can go long near this level with a 50 point stoploss. But if 15400 breaks and Market starts to weaken then 15200 opens up. Yesterday U.S Fed said that they are doing their best to control Inflation. Rate hikes are the only possible tools and U.S Stock Market Recession should continue. This wasn't a pleasant statement made by Fed. Yesterday U.K inflation data was announced and it was at 9.1%. This is the 40 year high Inflation number. Because of this Markets all over the World witnessed sell off yesterday. Today expiry should be range bound and don't expect big moves on either side. Midcaps and small caps are crashing like no tomorrow. Nifty is misleading as it'

U.S Markets closed significantly higher yesterday. Right now Dow futures are lower. SGX nifty is lower. Yesterday it was a pleasant surprise for the Bulls. Nifty was trading violently between 15200 and 15400. This range held upto Friday and Monday. Yesterday as soon as this range got broken on the higher side , there was a big rally. The rally was so severe that Nifty even tested 15700. More than 400 points short covering rally. In Bear market the rallies are even more fast & furious. These rallies do not last long and get punctured eventually. Infosys ADR was up 5% Yesterday. Yesterday there was big addition of Open interest in Put options. There was big unwinding in Call options. What next from here is the big question. Now the range has shifted to 15400 & 15700. Why 15400 because Nifty broke out of 2 days consolidation from this level. Why 15700 because Nifty faced resistance near this zone yesterday. This is a market where you shouldn't pre-empt much and jus

U.S Markets closed mixed on Friday Right now Dow futures are slightly lower. SGX nifty is flat. Friday was a high volatility session within a range. Nifty moved violently between 15200 and 15400. There were huge swings throughout the day. India VIX closed flat. Right now Asian markets are lower. Crypto holders are having pain of their lifetime. There is absolute bloodbath in crypto Market. Each and every crypto is down 70% from the top now. Some are Down even more. HDFC Bank ADR was up 4%  Crude oil cooled off  All this indicating a possible bank Nifty rally. Bank Nifty should outperform Nifty in the short run. Expecting an Inside candle day for Nifty today as well. Nifty likely to trade within Fridays range. Nifty might Trade between 15200 to 15400. stockmarketadvisory.in

U.S Markets crashed yesterday. Right now Dow futures are higher. Asian markets are higher. SGX nifty is indicating a gap up opening. Yesterday was one of the brutal fall in our Market. Market opened with a good gap up but then selling started. The selling was so severe that we broke the swing low of 16650 and after 1 pm it was out of control. Weekly expiry contributed to the issue downside. Markets are very weak and any slightly bad news markets ate getting hammered. The burning question is what next from here? I do not think we have made a bottom just yet and there's more to come. Trends don't change so quickly and easily  There will be pullbacks in between but the markets are expected to remain weak  Long term investors should review their portfolio and see if their companies are performing well. All the Junk stocks bought during Bull Market will go to single digits in coming days. Quality stocks will recover much more faster. The best thing to do right now is to

U.S Markets closed higher Yesterday. Right now Dow futures are higher by 140 points. Asian markets are higher. SGX nifty is indicating a gap up opening. Yesterday as anticipated Fed increased the interest rates by 75 basis points. This is the largest increase since 1994. There was a relief rally due to the same in U.S market and U.S VIX crashed 10%. How long will this relief rally go on is a big question. Our Markets were terrible yesterday. Everybody is shorting left , right and center. Yesterday all Put options premiums raised in last 30 mins. Even 15200 PE which is 500 points away from spot rose from 4rs to 13rs. Today we might get some short covering as we open and even head higher. 16000 should be a firm resistance for the day. I won't chase this gap up because when Market reverses it's with great speed. I'll look to short near 15950-15980 with a stoploss of 16020. In Bear markets the rallies sre quite ferocious but again markets make fresh lows. So remembe

U.S Markets closed slightly lower yesterday. Right now Dow futures are higher by 140 points. Asian markets are higher. SGX nifty is indicating a flat opening. Tonight we will be having the Fed monetory policy. Majority of the market participants are indicating a 75 basis point hike tonight. This is more likely priced into the Market. If Fed remains hawkish and provides hawkish commentary then market will continue its downward trend. Above picture is of the Hawk bird. They are considered to be angry and ruthless. Hawkish commentary means negative commentary. I get many queries in personal DM hence I thought to explain it today. On the other hand , Dowish commentary means a Bullish Commentary. Dow bird is considered to be quite peaceful in nature. So which direction Fed chooses today will be interesting to see. Tomorrow we have weekly expiry so option sellers are adviced not to carry any positions. A peaceful sleep is important than few bucks in my opi

U.S Markets closed lower Yesterday. Right now Dow futures are higher by 140 points. Asian markets are mixed. SGX nifty is indicating a 50-60 point gap down. Yesterday was a mayhem over all the asset class. Stock Market , Commodity and Crypto all fell. Yesterday Nifty has closed near the lower end of the range. 15750 was the Russia - Ukraine low. This low was defended in the Month of May as well. Yesterday this level got broken. Last hour recovery helped market to close above this level. U.S VIX was up 20% yesterday. India VIX inched 15% higher yesterday. VIX inching higher is a worrying sign. Right now sentiment is extremely bearish. There is huge call writing from 15800 to 16200. There's no significant Put writing. So we are in a highly oversold territory. For any rally from here we need some positive triggers. So that shorts are out and Market rallies. Right now that doesn't look likely. We may continue to be in oversold territory for more time. Once we get closin

U.S Markets closed lower on Friday. Right now Dow futures are lower by 300 points. Asian markets are lower. SGX nifty is indicating 300 points gap down. Everyday market has been opening with large gaps. These are either down or up. Today it is with a huge gap down. Reason is U.S Inflation numbers. I was warning everyday U.S Inflation numbers could make or break the Market. Because in 2016 I faced similar situation and lost 23 Lakhs in 2 trading sessions. It took me 3 Months to recover the losses. Similar kind of set up was building this time around hence I expected big move after the Inflation data. Experience helps a lot in trading. Particularly Bad Experience teaches you very important lessons. At open there will be chaos and panic today. Those who shorted Puts will face the Heat and Market can head much lower. The only trade after such huge gap down is to Buy. One could buy Nifty near 15800 with a stoploss of 15750. I don't think this correction is just for today. Th

U.S Markets closed lower yesterday. Right now Dow futures are lower. Asian markets are flat. SGX nifty is indicating 80-100 points gap down. Everyday market has been opening with large gaps. These are either down or up. Yesterday it was a gap up , today it is a gap down. Though there was a huge gap up Yesterday , Market was sold off within minutes. The selling was so severe Nifty broke Tuesday of 16350 and tested 16300. From 16300 it rallied all the way back to 16500. Finally closing near 16350. So yesterday could be termed as highly volatile trading session. This Volatility is going to continue today. This is because we have U.S Inflation data coming out tomorrow in U.S. This Inflation data is going to decide the future course of the market. I believe inflation data could disappoint the Bulls. This could cause huge gap opening on Monday so option writers should be cautious carrying positions. Even carrying positions for a day in this market is huge risk. I expected June to

U.S Markets closed higher yesterday. Right now Dow futures are flat. Asian markets are mixed. SGX nifty is indicating 80-100 points gap up. Everyday market has been opening with large gaps. These are either down or up. Last 2 days it was a gap down , today it is a gap up. Today the focus is on RBI. RBI policy is due at 10 AM today. RBI Governer has already prepared market this time for a rate hike. Previously , this wasn't the case. RBI gave a shocker to the Market by suddenly doing a hike. This shocker caused the Market to crash. Expecting a no shocker policy from RBI today. As they know it's repurcussions could be dangerous. There would be Intraday volatility going into the policy but I have a gut feeling option sellers would make good money today. Specially put writers. U.S VIX crashed 5% yesterday. Expecting India VIX to go down after the policy as well if policy is as per expectation. Stoploss for long trades and put writing should be 16350 ie , yesterday's

U.S Markets closed flat yesterday. Right now Dow futures are lower. Asian markets are lower. SGX nifty is indicating 100 points gap down. This seems to be a action replay of yesterday. Yesterday as well we opened with same gap down Defended the lower range of 16400 and moved higher. Today as well we are again retesting the lows as per SGX. Not much has changed within 24 hours so I believe lows to to defended today. 16400 should be kept as a stoploss for long positions. Once this is taken out then expect more downfall. There is high open interest in all the call options. Put options below 16300 have added good open interest as well. So the range seems to be pretty clear. Bank Nifty has showed strength yesterday and it's likely to continue. 35000 is a strong support. Yesterdays low is to kept on track as it offers a great buying opportunity. There will be a lack lustre price action so be modest and take small gains. Nifty might Trade between 16380 to 16600 today. stockmar

U.S Markets closed lower on Friday. Right now Dow futures are higher. Asian markets are mixed. SGX Nifty is down 30-50 points. Friday was a Disappointing close for the Bulls. Market opened with a big gap up and then eventually closed at the lowest point of the day. Trading is within a range of 16400 to 16800 for Nifty. Market is making big swings with huge Volatility. Similarly previously it was trading between 15750 to 16400 in May month. I expect market to trade within this range for this week as well. U.S jobs showed fantastic growth but still market closed lower. This shows the sentiment is very weak  When people sell into Good news that means traders want to exit longs immediately. This happens in a Bear market scenario. In spite of Nasdaq crashing 2% on Friday CBOE VIX was flat. This indicates the panic and majority of negative news flow has been discounted. Expect RBI not to give any more shocks on coming Wednesday as we have the RBI policy coming up. Expectations ar

U.S Markets closed higher Yesterday. As soon as U.S Markets opened it fell 300 points. Then market rallied from -300 to +450. U.S VIX crashed 5% yesterday. SGX nifty is indicating almost 200 point gap up today. SGX nifty is close to 16800 today. Market is likely to open close to resistance levels today. 16400 to 16800 is the range in which we are trading this weekly expiry. So if 16800 is crossed 17000 and 17200 open up  16400 is a super strong support now. Yesterday Nifty opened close to lower range and today it's opening at higher range. So 400 point move in just 1 trading session. Yesterday expiry as expected was quite rangebound. Suddenly now everything seems to be okay. In May month it was world coming to an end when you look at stock market June has been a bullish beginning so far. Im not confident of chasing this gap up at open. Will wait for a retest of yesterday's low near 16650 or close to 16700 and will look to build longs. Today we also have U.S jobs dat

U.S Markets closed slightly lower yesterday. Right now Dow Futures are mildly Positive. Asian markets are mixed. SGX nifty is down 30-40 points. Yesterday in Spite of SGX nifty showing a bigger gap up we opened slightly negative. Throughout the first half until 1 pm we traded almost flat. Then after 1 pm there was a huge selling. Nifty fell to 16450. Last 30 mins there was a meaningful recovery of 50-70 points. It could be said as a rangebound consolidation with good amount of volatility. As I've kept on saying 16400 to 16800 is the range for Nifty. Nifty is trading within this range in last 3 trading sessions. Today we are likely to expire within this range itself. Markets stabilizing after Mayhem in May is in itself a positive aspect. Yesterday U.S VIX again closed lower. It's now at 26 . Below 25 is a comfortable position for U.S VIX. Below 20 is a comfortable position for India VIX. Look to buy Nifty near 16450-16400 with a stoploss of 16350 and look to sell nea

U.S Markets closed lower yesterday. Right now Dow Futures are higher. Asian markets are higher. SGX nifty is down 50 points. Yesterday can be termed as a volatile+ sideways day. Nifty was in a range but it was trading with huge Volatility. As soon as Market opened Nifty crashed and went close to 16500 then bounced all the way and was Volatile throughout. Last hour there was a huge Intraday selling. Bank Nifty fell 500 points in last 45 minutes. This might be majorly due to crude oil prices + Global weakness. Crude Oil yesterday was above 120$ barrel. This is not at all a good sign for India. Yesterday GDP numbers were also announced and it was not that great. Industrial production data was much better than expected. As I said Yesterday 16400 to 16800 is the range for Nifty now. I will use ranging strategies+ straddles until this range holds. Whenever any of this level is surpassed I will look to use directional strategies. Bank Nifty range is 35000 to 36000. Though U.S mark