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Pre - Market Analysis (29th September 2022)

  1. U.S Markets closed higher Yesterday.
  2. Right now , Dow Futures are lower.
  3. SGX Nifty is up 200 Points 
  4. 100-150 point gap up / gap down has become a normal routine now 
  5. U.S VIX crashed 7% Yesterday.
  6. This is a good sign for option sellers and also markets.
  7. As Volatility would reduce and markets find stability.
  8. Today as per SGX we are likely to open above 17k.
  9. 17k CE has the highest open interest for today's expiry
  10. If we sustain above 17k and cross Yesterday's high of 17100 this will induce huge short covering.
  11. Today is expiry so crazy things happen on expiry days.
  12. This is because of expiry related issues etc.
  13. Another Possibility is FII's use this gap up as an Opportunity to sell big .
  14. Previous 6 trading sessions, FII's have sold for 16500 crores 
  15. This is intense selling owing to Rupee depreciation.
  16. Today will they again use this as an opportunity to sell or will cover shorts.
  17. We shall know by the first hour price action.
  18. Generally on expiry days we have an inside candle 
  19. Which is yesterdays trading range.
  20. Yesterday's range was 16800 to 17100.
  21. If any of these levels gets taken out then we are likely to have a big trending day.
  22. Chasing a 200 point gap up isn't advisable.
  23. I would rather like to short near 17050-17100 with a 50 point stoploss.
  24. This gives me a Risk reward ratio of 1:3 , 1:4.
  25. Nifty might Trade between 16800 to 17100 today.


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