Yesterday, almost every sector ended in deep red in our markets.It was bad news one after the other.In another blow to the new reforms, Parliamentary committee rejected the proposal to increase the foreign investment cap in insurance from 26% to 49%. And in another twist the Parliamentary standing committee rejected the UID Authority bill in the present form and has asked the Government to redraft the bill.Though the inflation numbers were decent, it went unnoticed by the markets.
Expect our markets to open negative following the fall in US markets yesterday and initial weakness of Asian peers.ECB said it would not increase Government bond purchases and called the bond purchases program is not eternal. This sent the world markets into deep red.And as expected ECB reduced the rates by 25 bps.
IIP data for the month of October will be released on Monday,December 12th.Be prepared to expect some negative surprises.Keep an eye on the outcome of the EU leaders meet.
Alex Sir's view on Markets.
The PCR(Put-Call ratio) is well below the 1.2 cut off mark which indicates there are no sufficient put option at the lower levels.In a bearish scenario, this is extremely negative.The IV(Implied Volatility) of the options are LIKELY go up from the current levels , from 24 to 32 for calls and from 29 to 36 for puts.
Expect huge volatility in the near future.The Banking,capital goods and metal sector will show further weakness.
The better strategy which would fit in, in this volatile condition is a LONG STRANGLE.
BUY 4600 PUT and BUY 5000 CALL.
Have a happy weekend!!
(To receive the Daily Market Report and Breaking news during market hours, in your inbox, type your email id in the box(Subscribe to Broker King) below the World Map in the blog and click Subscribe).www.brokerking.blogspot.com
Expect our markets to open negative following the fall in US markets yesterday and initial weakness of Asian peers.ECB said it would not increase Government bond purchases and called the bond purchases program is not eternal. This sent the world markets into deep red.And as expected ECB reduced the rates by 25 bps.
IIP data for the month of October will be released on Monday,December 12th.Be prepared to expect some negative surprises.Keep an eye on the outcome of the EU leaders meet.
Alex Sir's view on Markets.
The PCR(Put-Call ratio) is well below the 1.2 cut off mark which indicates there are no sufficient put option at the lower levels.In a bearish scenario, this is extremely negative.The IV(Implied Volatility) of the options are LIKELY go up from the current levels , from 24 to 32 for calls and from 29 to 36 for puts.
Expect huge volatility in the near future.The Banking,capital goods and metal sector will show further weakness.
The better strategy which would fit in, in this volatile condition is a LONG STRANGLE.
BUY 4600 PUT and BUY 5000 CALL.
Nifty has support at 4873 , 4750 and 4650. Resistance at 4988 and 5108.
Have a happy weekend!!
(To receive the Daily Market Report and Breaking news during market hours, in your inbox, type your email id in the box(Subscribe to Broker King) below the World Map in the blog and click Subscribe).www.brokerking.blogspot.com
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