- U.S Markets closed lower yesterday.
- Right now , Dow futures are higher.
- Asian markets are mixed.
- SGX Nifty is down 50-70 Points.
- Yesterday it was a very unexpected trading session.
- As it has been happening most of the times
- Nifty opened 150 points higher.
- Was steady throughout and was slowing inching higher.
- At one point of time , Nifty was higher by 300 points.
- Last 1 hour only to fall by 150 points.
- There was no reason for Nifty to be 300 points higher yesterday.
- When all the Global markets were flat / negative.
- These are erractic price movements.
- Markets have been moving everywhere between 17400 to 18100.
- We have Fed decison today.
- Expect Volatility to increase before Fed decision.
- U.S VIX closed above 27 yesterday.
- India VIX was still at 19 yesterday.
- Option premiums yesterday crashed on both calls and puts.
- Put premiums crashed by 50-60% and calls did not go higher proportionately.
- Surprisingly, there has been high open interest addition from 17500 to 17800 PE.
- Hardly any calls have been written.
- Market participants believe Fed event has already been factored and markets should go higher after the event.
- But if vice - versa happens markets will crash as put option writers would face heavy losses
- Nifty might Trade between 17600 to 17900 today.
- 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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