Dalal St Daily 4th November
GLOBAL MARKETS
• US markets ended in positive territory
• Dow closed 650 points higher as Joe Biden was leading.
• US markets ended in positive territory
• Dow closed 650 points higher as Joe Biden was leading.
• Today only US Election results will dominate the markets.
• But there is some sudden selloff seen in todays early session.
• Dow futures down by 100 points
• S&P futures dip, reverse earlier gain
• Investors want decisive result and path to stimulus. Markets are expecting a faster stimulus for the covid impact they are not worried about who wins but needed a stable government and stimulus package to be decided soon.
• U.S. stock market futures dipped late on Tuesday as early voting projections emerged in a rancorous U.S. presidential election, with investors hoping to avoid a prolonged process that would delay a potential fiscal stimulus to help an economy reeling from the coronavirus pandemic.
• Biden's lead over Trump in national opinion polls has raised expectations of a decisive outcome and a post-election stimulus package that would make good on Biden's promises of infrastructure spending
• It seems as though the polls have narrowed, which makes it a little bit more difficult for Biden, but the market reacting the way it is now tells me the market thinks we are going to get a resolution fairly quickly.
• "If for some reason we don't have any kind of a clear picture, if there is an unwillingness to concede on the part of the loser and this ends up having to go to the courts, we are in for some choppy, volatile markets for awhile," Frederick said
• The CBOE Volatility index .VIX , Wall Street's fear gauge, touched a one-week low after hitting a 4 and a half month high last week.
• Democrats, who already control the U.S. House of Representatives, are also favored to emerge from 14 hotly contested U.S. Senate races with full control of Congress, although final results from at least five of those contests may not be available for days, or months in some cases.
• On election night 2016, U.S. stock index futures plunged as Trump pulled off an upset victory against Democrat Hillary Clinton. However, the next day marked the start of the so-called "Trump rally" that saw the S&P 500 jump 5% in a month, fueled by promises of massive tax cuts and financial deregulation.
• Dollar is down
• Oil is still up on hopes of fiscal stimulus
• Oil up by 42 cents trading at $38
• Dollar index futures trading at 93.662 near to 94
DOMESTIC MARKETS
• Indian markets closed in positive territory for 2nd day.
• SGX NIFTY is trading 45 points lower at 11800
• Dow futures down by 100 points
• S&P futures dip, reverse earlier gain
• Investors want decisive result and path to stimulus. Markets are expecting a faster stimulus for the covid impact they are not worried about who wins but needed a stable government and stimulus package to be decided soon.
• U.S. stock market futures dipped late on Tuesday as early voting projections emerged in a rancorous U.S. presidential election, with investors hoping to avoid a prolonged process that would delay a potential fiscal stimulus to help an economy reeling from the coronavirus pandemic.
• Biden's lead over Trump in national opinion polls has raised expectations of a decisive outcome and a post-election stimulus package that would make good on Biden's promises of infrastructure spending
• It seems as though the polls have narrowed, which makes it a little bit more difficult for Biden, but the market reacting the way it is now tells me the market thinks we are going to get a resolution fairly quickly.
• "If for some reason we don't have any kind of a clear picture, if there is an unwillingness to concede on the part of the loser and this ends up having to go to the courts, we are in for some choppy, volatile markets for awhile," Frederick said
• The CBOE Volatility index .VIX , Wall Street's fear gauge, touched a one-week low after hitting a 4 and a half month high last week.
• Democrats, who already control the U.S. House of Representatives, are also favored to emerge from 14 hotly contested U.S. Senate races with full control of Congress, although final results from at least five of those contests may not be available for days, or months in some cases.
• On election night 2016, U.S. stock index futures plunged as Trump pulled off an upset victory against Democrat Hillary Clinton. However, the next day marked the start of the so-called "Trump rally" that saw the S&P 500 jump 5% in a month, fueled by promises of massive tax cuts and financial deregulation.
• Dollar is down
• Oil is still up on hopes of fiscal stimulus
• Oil up by 42 cents trading at $38
• Dollar index futures trading at 93.662 near to 94
DOMESTIC MARKETS
• Indian markets closed in positive territory for 2nd day.
• SGX NIFTY is trading 45 points lower at 11800
• As the sell off started in the early tuesday trade.
• Our markets are stiffly following the US markets.
• Our markets are stiffly following the US markets.
• India VIX is @24 and may crash any moment after the clear winner so stay out of option buying.
• Bank NIFTY is almost up by 2000 points in two trading sessions
• But, 24000 PE is still trading @70Rs these kind of high premiums are rare in the market. This expiry will be one of volatile expiry to be noted.
• Asian markets are mixed with volatile opening.
• Markets are expecting Joe beiden to win in my sense.
• Indian markets will be volatile today.
• For this weekly expiry option chain saw some huge shorts covering their positions and and there are plenty of puts sellers seen in the option chain.
• We will get the clear trend by today afternoon
• I'm expecting that markets to move higher after some sell offs.
• FII have bought heavily for 2000 crores
• The overall market breadth has turned up slightly with broad market indices like NSE Midcap 100 closing higher by 0.70 percent and Smallcap 100 closed on a flat note.
• The Bank Nifty climbed 790.30 points or 3.17 percent to 25,682.80 and outperformed the Nifty50 for second consecutive session
TRADING RANGE
• Nifty may trade between 11600-12000
• Banknjfty may trade between 25300-26100
OI ANALYSIS
CALLS
• Maximum Call open interest of 15.04 lakh contracts was seen at 12,000 strike
• Call writing was seen at 12,200 strike
• Call unwinding was seen at 11,600 strike.
PUTS
• Maximum Put open interest of 24.84 lakh contracts was seen at 11,000 strike.
• Put writing was seen at 11,500 strike.
• Put unwinding was witnessed at 11,000 strike.
FII & DII ACTIVITY
• Foreign institutional investors (FIIs) net bought shares worth Rs 2,274.4 crore
• domestic institutional investors (DIIs) net sold shares worth Rs 1,100.92 crore.
• Bank NIFTY is almost up by 2000 points in two trading sessions
• But, 24000 PE is still trading @70Rs these kind of high premiums are rare in the market. This expiry will be one of volatile expiry to be noted.
• Asian markets are mixed with volatile opening.
• Markets are expecting Joe beiden to win in my sense.
• Indian markets will be volatile today.
• For this weekly expiry option chain saw some huge shorts covering their positions and and there are plenty of puts sellers seen in the option chain.
• We will get the clear trend by today afternoon
• I'm expecting that markets to move higher after some sell offs.
• FII have bought heavily for 2000 crores
• The overall market breadth has turned up slightly with broad market indices like NSE Midcap 100 closing higher by 0.70 percent and Smallcap 100 closed on a flat note.
• The Bank Nifty climbed 790.30 points or 3.17 percent to 25,682.80 and outperformed the Nifty50 for second consecutive session
TRADING RANGE
• Nifty may trade between 11600-12000
• Banknjfty may trade between 25300-26100
OI ANALYSIS
CALLS
• Maximum Call open interest of 15.04 lakh contracts was seen at 12,000 strike
• Call writing was seen at 12,200 strike
• Call unwinding was seen at 11,600 strike.
PUTS
• Maximum Put open interest of 24.84 lakh contracts was seen at 11,000 strike.
• Put writing was seen at 11,500 strike.
• Put unwinding was witnessed at 11,000 strike.
FII & DII ACTIVITY
• Foreign institutional investors (FIIs) net bought shares worth Rs 2,274.4 crore
• domestic institutional investors (DIIs) net sold shares worth Rs 1,100.92 crore.
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