- U.S Markets closed lower yesterday.
- Asian markets are mostly lower.
- Dow futures are slightly higher right now.
- SGX Nifty is down 100-120 Points.
- Market texture has turned to Highly bearish now.
- Any gap up or short covering rally has been sold into aggressively.
- India VIX a week ago was at 13 & yesterday it went above 16.
- This indicates that the Volatility has also been rising.
- As the Volatility rises , so does the option premiums.
- Last expiry week is generally highly Volatile & the Gamma effect is also at its peak.
- This is due to many factors such as roll overs , expiration of all the contracts etc.
- Yesterday after market hours when I checked the data came another shock.
- FII's & DII's both were net buyers yesterday.
- They have bought yesterday for combined 2000 crore plus.
- In spite of positive buy data markets closed lower yesterday.
- 18000 PE has the highest open interest in monthly options.
- Today , 18000 is likely to be tested.
- If we break 18000 then we would be heading towards 17800.
- 18000 is the final hope for longs if anybody is still long on the markets.
- Below 18k , markets would continue to slide further.
- It's advisable not to carry positions over the weekend.
- Nifty might trade between 17900 to 18200 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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