- U.S Markets closed flat yesterday.
- Asian markets are mostly mixed.
- SGX Nifty is flat.
- Nifty is likely to have a flat opening today.
- This is good for positional option sellers.
- I do sometimes carry positions overnight.
- Premiums are too less and selling options isn't favorable now.
- Any fresh option sell positions should be avoided.
- I'm just trailing stoplosses for the positions I have taken before.
- Avoiding to enter into any fresh positions as of now.
- India VIX is below 15.
- India VIX below 15 indicates a Bull Market.
- Higher premiums can continue for a long time and lower VIX and lower premiums can also continue for a long time.
- Markets are in a consolidation phase right now.
- 18200 is a strong support and I don't expect this to be broken for weekly expiry.
- One can consider building long positions close to such support zones.
- All the trades come with stop-loss so one has to follow strictly.
- Before Inflation event I was bearish but I turned bullish after the event and had covered all of my losses and now in net positive.
- One has to react swiftly if you are into trading business.
- Nifty might trade between 18250-18450 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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