Skip to main content

Pre Stock Market Report, September 30, 2020

 

  1. US markets closed in Red.
  2. But, right now, as Presidential Candidates debate is going on, US futures are higher.
  3. Asia opened lower. Australia and Japan opened lower while South Korea is closed.
  4. At 6.30 am, China Manufacturing and Services PMI came, which was better than expected.
  5. Both China and Hong Kong markets opened higher.
  6. SGX Nifty is trading about 30 points higher.
  7. Yesterday our markets were highly volatile.
  8. But still traded within a range of about 100 points.
  9. FIIs have resumed their selling after a gap of just one day.
  10. Yesterday they have sold for Rs 1457 crores.
  11. That is a huge figure as they have sold for Rs 10000 crores in last 5 days.
  12. So, on an average, they have sold for Rs 2000 crores per day, in last 6 days.
  13. Yesterday Metals, IT and Autos did well.
  14. Reliance and TCS supported the markets, otherwise Nifty would have fallen much more.
  15. On one side Reliance and TCS trying to bring markets higher and on the other side Banking stocks trying to bring the markets down.
  16. When Nifty closed almost flat, Bank Nifty fell more than 200 points.
  17. Markets consolidating after 2 days of sharp uptick of 450 points.
  18. But the volatility with which it is consolidating is a concern.
  19. Nifty 11180-11300 is a high volatile zone.
  20. So traders should wait for this range to be broken to take a directional view.
  21. Liquidity seems to be curbing in the Primary market due to many IPO's being launched.
  22. IPO's have been oversubscribing more than 50X each on average so majority funds are blocked there.
  23. India VIX is slowly inching higher.
  24. Today is Wednesday and hence there will be lot of volatility.
  25. Option premiums are high in weekly Bank Nifty options.
  26. Bank Nifty 21000PE and 22000CE combined premium is more than Rs 100.
  27. The way FIIs are selling, it is possible the markets may go for trending.
  28. US Presidential candidates debate is not having any negative impact in the world markets.
  29. Yesterday India VIX was up slightly.
  30. Hope Bank Nifty take support at 21300 which is yesterday's low.
  31. Nifty may trade between 11180 and 11320.
  32. Once this range is broken, markets may go for trending.
  33. Possibilities that Reliance may hold Nifty today.
  34. As they have some more Investments from General Atlantic.
  35. Just as I type Dow Futures down 1% after the Presidential debate after they were in Green.
  36. So get ready for a high Volatile session today.
  37. Nifty might Trade between 11120-11340 today.
    OCTOBER PERSONAL MENTORSHIP PROGRAMME REGISTRATIONS ARE OPEN- 9773770675 

Labels:

Comments

Post a Comment

Popular posts from this blog

Understanding Gaps in the market and trading them !!

  Common Gaps Sometimes referred to as a trading gap or an area gap, the common gap is usually uneventful. In fact, they can be caused by a stock going ex-dividend when the trading volume is low. These gaps are common (get it?) and usually get filled fairly quickly. "Getting filled" means that the price action at a later time (few days to a few weeks) usually retraces at the least to the last day before the gap. This is also known as closing the gap. Here is a chart of two common gaps that have not been filled for while but now filled up . Notice that after the gap the prices have come down to at least the beginning of the gap? That is called closing or filling the gap. A common gap usually appears in a trading range or congestion area, and reinforces the apparent lack of interest in the stock at that time. Many times this is further exacerbated by low trading volume. Being aware of these types of gaps is good, but doubtful that they will produce a trading opportunities. Brea...
Post a Comment
Read more

Questions and Methods for Price Action Analysis

 Winners and Losers in the Market a. Who is dominating the current swing, bulls or bears? b. Are they correct? c. If they‟re wrong: i. Where is this move likely to stall? Where is the opposite order flow likely to enter the market? ii. Where will these traders have positioned their stops? d. If they‟re right: i. Where are these traders targeting? Where are they going to take profits or lighten their position? e. If they‟re in the right direction, but late: i. Where is the worst place to be entering late in this move? Where will the late traders be stopped out? Trapped Traders a. Where is the last group of trapped traders? b. Where are they hoping to get out? How will that affect price? c. Where will they give up and bail out? How will that affect price? Expectations - Most Likely Price Movement a. What do you expect the market to do from here? i. Why do you expect that? ii. How would price have to behave prior to that move occurring? iii. Is price behaving this way? b. If the most ...
Post a Comment
Read more

The Force is Within You, Luke. It’s Not the Trading System.

 There are only a handful of people who give a darn about supplying traders with a way to be more disciplined and focused in their trading.  I’m one of them, so I think I know why there are so few of us.  Heck, I’m in the business of supplying traders with a tool to help improve the mental side of the trading equation… the “human” element.  With (what I think) is such an important service, why am I out here virtually alone?  For a couple of reasons.    First, although most traders will admit that the mental part of trading is key to winning in the long-term, most believe they can “gut it up” and just “shake it off” when negative emotions and behaviors rear their ugly heads.  They don’t need a shrink!  They know what they need to do and by-cracky, they’ll do what needs to be done without any help!  I call this the Macho Syndrome And what’s funny is… I get most resistance to the notion of mental discipline (as formal training) from those t...
Post a Comment
Read more