US Markets: The US markets opened lackluster on Monday morning and remained in profit booking mode throughout the weak. Investor sentiment was jittery on the back of better than expected domestic data thereby reviving possibility of an early rate hike by US Federal Reserve and geo-political headwinds. On the macroeconomic data front, a report from the US Commerce Department showed that new home sales grew 7.8% to an annual rate of 539,000 in February (analyst expected it at 462,000). US consumer price index increased up 0.2% in February 2015 after falling by 0.7% in January 2015. A report from the US Commerce Department mid-week also depicted an unexpected drop in durable goods order in Feb 2015 (down 1.4%). US initial jobless claims fell more than expected for the week ended 21st March 2015. Initial jobless claims fell to 282,000 from the earlier week levels of 291,000. Continue reading Markets Review – 27March2015
Tag Archives: Nifty
Nifty Options Chain Analysis – 16 Dec 2014
Nifty Put Options went explosive today with Nifty coming close to 8050 today (day low 8052), having lost nearly 600 points in the last two weeks, making people want to buy protection as urgently as possible, at whatever price. We were selling Puts (with good profit) that we had bought when they were much cheaper. All those folks who resisted buying Puts, hoping for a pullback, could no longer wait and watch the market sinking, and see the Nifty Put options swelling in value 50% per day, every day!
Imagine, Nifty Dec 8500 Put option was at Rs 50 at the start of this series, and nobody really expected much downside despite sluggish moves in November 2014. That same Nifty Dec 8500 Put option was at 383 today, a gain of 666%!! Agreed that Nifty Put options have not paid off always in last 12 months, because of the bullish market, but they pay when markets are correcting from high levels, like in this month. Continue reading Nifty Options Chain Analysis – 16 Dec 2014
Sensex 10 Year Chart with Trendline -April 2014
The latest upmove in Sensex, in March 2013, has taken it past the 10 year trendline that was acting as the resistance (since 2011) on the upside at around 21300 (Nifty 6300). Now, the same trendline will act as support. Historically, all levels below the trendline have been a profitable for buying, and the Sensex has taken off after crossing this trendline in the last two occassions since 2004, after doing a test of its support strength. So there maybe a 5-10% correction before the next big upmove comes through. The major gainers will be the stocks linked to business cycles, like Banks, Financials, Energy, Materials, which are currently driving the Sensex higher. However, Indian market can not make and hold new highs if other countries are falling down. Global equity markets are correlated because Risk-on and Risk-off trades are playing across equity markets at the same time. A sharp rise of USD against other currencies is probably the biggest risk to Sensex upmove.