- U.S Markets closed higher Yesterday.
- Right now , Dow Futures are higher
- SGX Nifty is up 200-250 points
- This is a serious gap up opening today.
- Yesterday markets closed at lowest point of the day.
- Lowest point of the day as per Technical Analysis indicates bearishness.
- Many People have sold huge call Options Yesterday.
- These people will face huge trouble today.
- Tomorrow is a trading holiday so we have only 2 working days for this expiry.
- Yesterday, in the first half I had sold call Options and squared up towards the end.
- During the end of the day I felt that Premiums are unreasonable.
- India VIX was up 7% Yesterday without any reason.
- 17500 PE which is 400 points away was trading at 25rs.
- There wasn't any news flow and with 2 days left for expiry it was a mouth watering premium.
- So today at gap up itself the account handling clients including me will make good return.
- One of the days where gut feeling works straight away.
- If there wouldve been a gap down we would come out with minimum damage doing adjustments.
- Will share the Snapshot of trades on whatsapp status.
- After this huge gap up buying is not advisable.
- 17200 is the upper band for Nifty.
- It may find resistance near these zones.
- I would go long only if 17200 breaks decisively.
- Will exit all positions on opening itself and wait for fresh opportunity during the day.
- Most likely would do nothing after exiting positions as tomorrow is holiday.
- So carrying positions might be highly risky in such environment.
- Nifty might Trade between 16950 to 17250 today.
- stockmarketadvisory.in
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
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