All you Need to know about Stock Markets

Open Interest quantity shows the total number of active contracts in each strike price and expiration date. Open interest is one of the columns displayed in an option pricing chain along with the current contract price, price change, bid price, ask price, and volume.  Open interest shows the current total number of option contracts that exist in the options market. This describes the option contracts that are being traded and haven’t been closed by an offset trade, option exercise, or assignment. When an option trader buys or sells an option contract, the trade is entered on the market as an opening or a closing option transaction. If you buy new call options that must be written then you are buying the calls to open. That purchase would add to the open interest after they are written. After the position is sold those options would close if they are bought back which would cause open interest to fall. When an option is sold to open it can also add more contracts to open...

Here are SIX lessons from Jesse Livermore who is considered by many as one of the greatest traders who ever lived. Lesson Number One:  Cut your losses quickly. As soon as a trade is contemplated, a trader must know at what point in time he’ll be proven wrong and exit a position. Risk management should dictate the size of the trade and how much you can lose. Deciding where to exit when a position is going against you is not a winning strategy. Lesson Number Two: Confirm your judgment before trading a larger than average position. Livermore was famous for throwing out a small position and waiting for his thesis to be confirmed by it going in his favor. Once the stock was traveling in the direction he desired, Livermore would maximize his trading size for out sized wins. There are many ways to add to a winning position — pyramiding up at key pivot points, building a position as the trade goes in your favor, being 100% in no more than 5% above the initial entry — but the ta...

U.S Markets down 400 Points today morning. Fears & Concerns over the U.S - China has escalated recently. Asian Markets are Mostly Trading Negative. SGX Nifty is now Trading near 9400. Yesterday as Expected the Upside rally Continued . 9400 was taken away on the Nifty and we closed near 9500. Patience is the Key. Whole of the May Month Markets were Consolidating and mostly Rangebound. Those who waited Patiently Enjoyed the Breakout. Traders those who hurry up the Process might have lost everything in consolidation phase and Couldn't take benefit of the Breakout. The Dream rally is done now and now it's time to get back to Senses. India - China border issues have been escalating over the past few days. Markets are again likely to Consolidate between 9000 to 9500 for some time now.  Today we will get India's Quarterly GDP data. This data is for Jan - March Quarter. Anyways that won't be too much of relevance as everyone knows the slow growth in advance due ...

US markets closed 2% higher Yesterday. Asian markets are all cheering in Green. SGX Nifty is now Trading near 9365. In Spite of high Negative news Yesterday , Markets have given a Breakout. India - China border Tensions. Corona Virus Cases Rising. Inflation Going up , Growth going down. Still Markets Rallied heavily Yesterday & all the Shorts were taken to cleaners. Usually in highly Volatile Markets , generally on the last days of Monthly Expiry we witness a big move. April Month also Markets Witnessed a huge move. To be fair , I too dint expect such huge rally Yesterday and was totally taken by surprise. Bank Nifty higely Outperformed Yesterday and the reason was only "Short Covering" Still lot of shorts are in the System and they will have to square up their positions today. Yesterday Call Option Writers lost big due to this Unexpected move. I also lost some Money but managed my risk well not to lose huge. Bought 9250 CE well in time to hedge 9350 CE which ...

US markets opened 2% higher yesterday but was under selling pressure in the last Hour. In the last hour, S&P 500 lost almost half of the gain. That is due to a news report that said Trump is considering sanctions against China. Asian markets are mixed. SGX Nifty is Flat. Another issue which nobody is talking about is India - China Border issues. Yesterday , for the first time in May Series Bank Nifty Outperformed Nifty. Bulls were Unable to take away the Resistance of 9200 on Nifty. Markets fell 150 points from Yesterday Intraday high. HDFC ltd even after bad results was up 3% Yesterday. Financial Stocks Seem to be bottoming out of their Bear Market. On the other hand , Bajaj Finance is making 52 weeks low on a daily basis. In Spite of VIX being down , there was huge Volatility Yesterday. Both FII's & DII's were net Buyers Yesterday. Our Markets are not following the Global Markets  Dow Futures were up 2% Yesterday but our Markets closed near the lows of the...

U.S Markets were closed Yesterday. Other Markets which were open , closed Positive. SGX Nifty is trading 100 Points higher near 9130. On Friday , RBI Announced a Surprise Rate Cut out of Nowhere. Moratorium Period for Loans has been Increased from 3 Months to 6 Months. Banking stocks fell Sharply after this news broke out. It is a big setback on the Financial Sector because they have to pay interest on the deposits they have but cannot ask for interest on Loans. Financial Sector have 35% weightage in Nifty. There seems to be more pain for the Financial sector in the coming quarter which will indirectly impact Nifty. Financial Stocks should be avoided as of now as most of the Companies Stocks can crash by 70-80%. FII's & DII's were net Sellers on Friday. We are in a "Sell on Rallies" market currently & all the Gap ups should be sold into. HDFC ltd also came up with it's Quarterly Results and they were below par. The Range for Nifty is 8800 to 92...

In the markets there are many different types of traders and many motivations that drive them.  Everyone has heard of  different types of traders based on their trading method: Swing Traders, Day Traders, Momentum Traders, etc. But what about different types of traders based on their psychology, their very purpose?  Some trade for fun and excitement, others trade purely for ego. Other love the game and still others are in it only to make money. In the greatest game on earth it is surprising that many traders have different motivations, in reality the only correct motivation is to make money, that should be the real goal of any trader. Here are a list of ten types of traders I have observed on social media. We have all likely been more than one of these types at some time or another while trading. But we need to focus like a laser on the only real reason we should be trading: to make money and once we have made it, to keep it. Greedy Traders: They trade too big...

With real money on the line, a new trader will discover that live trading is not the same as books or simulated trading. One of the top three things that will determine the success of a trader is the trader’s psychology. The weakest part of any trading plan is the trader himself. Stress can knock a trader out faster than anything else. Traders must treat trading as a business, and realize that it is highly probable that some of your trades will be losers & some will be winners, and hopefully those winnings will be larger than the losses. A trader can’t control the market, instead, they must learn to control their own actions. How they choose entries, exits, position sizing, and method will impact the success of their trading career. The key to trading success is not fun and excitement, it is about making what you do as sterile and boring as possible, steadily making money with good trades that have the odds in your favor. Only risk that Percentag...

US markets ended on a Slight Negative zone Yesterday. Asian markets are also Trading Negative. SGX Nifty is down 50 points trading near 9030. Yesterday we opened with a gap up and were able to Sustain but gave up all the Gains in last Hour. Last 3 Expirys of May Month Nifty closed between 9100 to 9200. It doesn't mean Nifty is trading in just small Range. Nifty is going everywhere but expiring within that range itself. May Month has been a month of Consolidation for Markets. Meanwhile , Reliance is very close to get a cheque of ₹11,000 crore from KKR ltd. Reliance is able to raise huge funds from Global Investors despite the Corona Virus issues. In Bear Market big Companies become bigger and small Companies with high Debt become Zero. Money shifts into Big Bluechip Companies as they are sureshot survivers from this Pandemic. RBI Governer Shashikanta Das to Address Media at 10 AM. Bank Nifty would be very Volatile today upto 10.30 AM. India is Underforming the World Mark...

I post many Option Selling Strategies & Trades taken on my daily Blogs. Many of my Followers want to know how it can be done & how much return can it offer. Also sharing this to show that whatever I suggest to you on the Blogs I trade the same. I have many Accounts for Trading & I Personally handle Accounts of Clients as well but this Account ( On my Mothers Name) is primarily used for Option Selling & Hedging Strategies & I will be sharing the P&L of this Accounts only on a Frequent Basis. Capital used - 10 L Returns Generated - ₹41,154/- ( After Brokerage and Taxes)  Time Frame - 3 Working Days ( 19th May to 21st May) % Return Generated - 4.1%  Risk Taken - Minimum. ( As your Capital increases your risk taking ability decreases) Option Writing is Primarily done closer to Expiry so Trades are taken on those timeframes. Also , now a days BROKERS are not offering liberal Intraday limits as Markets are highly Volatile due to Corona Virus. Prof...

US markets closed 2% higher Yesterday. Asian markets are in Green but off their highs. Some markets are turning negative. SGX Nifty is down by about 50 Points and Trading near 9000. Yesterday in first half Nifty was Trading between 8900 to 9000. Second half of closing we Witnessed a short covering rally towards 9100 but this level Couldn't be broken. FII's were net sellers Yesterday and DII's were net Buyers. India VIX & U.S VIX are declining Contineously. This shows that the fear is lowering amount the Stock Market Participants. Financial Stocks Witnessed a short covering rally Yesterday. Bajaj Finance also ended 5% higher after it's results . 9100 CE has the highest open interest today for the Weekly Expiry. Once this level is taken out we can witness another rally of 50-60 Points on the Nifty. Until then not Expecting any Big moves for Markets today. First half is likely to be in a Consolidating phase. Government is Slowly opening up Airlines , Raliwa...

U.S Markets closed one & a half percent Negative Yesterday. Asian Markets are Mildly Negative. SGX Nifty is trading closer to 8900. Yesterday Nifty opened with a Positive bias but was sold into by End of the Day. Bank Nifty continues to Underperform & in turn put pressure on Nifty. All the PSU stocks are now Trading near their 20 years low. As I Always Believe that the Government is the Worst Promoter & I always stay away from Investing in Government Companies. Vaccination building & Implementation takes loads of time all the Rallies RELATING to such news in an Opportunity to sell into. India VIX was below 40 Yesterday and U.S VIX was also below 30. From past few days , Asian Markets are not reacting to Global Markets. Global Markets were Contineously Outperforming but our Markets Continued to Underperform. Yesterday Bajaj Finance came out with their results & the results were not so poor. Management is highly Transparent RELATING to the hardship & C...

U.S Markets closed 3% Positive Yesterday. Asian Markets are also Mostly Positive. SGX Nifty is Trading near 9000. The Reason of this Global Market rally is because Moderna Inc. a Bio Technology company declared that its Vaccine has got positive results in Corona Virus testing for earlier Stages. Yesterday all the World Markets were positive but our Markets Crashed 3%. Bank Nifty was even worse and crashed 6.5%. The Bluest of Bluechip Stocks were taken to cleaners Yesterday with huge selling pressure. NBFC stocks Crashed by more than 15%. FII'S and DII's were net sellers Yesterday and have sold more ₹2500 Crores combined. Clearly the Markets havent liked the Economic STIMULUS Package announced by the Government. The reaction was ferocious and was Clearly visible Yesterday. There was huge Volatility Yesterday and Option Premiums were Trading at high Premiums. India VIX shot up 9% Yesterday. U.S VIX fell 10% Yesterday and is now below 30. Markets are likely to Consolid...

US markets closed on a Mild Positive Note on Friday. Asian markets are also Mildly Positive. SGX Nifty is down 60 Points & Trading Near 9085. News Came over the Weekend that Lockdown has been extended all over the Country upto 31st May 2020. On Friday FIIs sold Greater than 2200 Crores. The FII Data Clearly Indicates that they havent liked the STIMULUS package from the Government. On Friday , Nifty again had a Retest of 9050 but reversed from there. Market is in a Consolidation Mode in May Series & Boundaries are not easy to be taken away. Meanwhile Reliance Industries has bagged another Cheque from General Atlantic (U.S Company ) for 1.3% stake in Reliance values at ₹6598 crore. This is the Fourth Cheque bagged by Reliance from the beginning of this Lockdown. Reliance is a stock which everyone should have in their Long Term Portfolio & can start Accumulating on small Declines / Dips. Markets are not ready to React on any Short term news being thrown on it for n...

I receive a lot of Messages over my Social Media Platforms stating whether one should Drop out from a Job & become a Full Time trader. Also I come across many Advertisements over the Social Media promising to leave a Job and become a Full Time Trader. Let me put my Views on this: Trading is a risky Business which comes with No Guarantee. While it might Seem easy to just sit in front of a Laptop and make money in Trading it's not that simple when it comes to Practical Implementation. Traders less than a Capital of ₹5 Lakhs should never jump into Full Time Trading & leave your job. There is a Proverb in Hindi ( Naa Ghar ke Naa ghat ke). You will be left Stranded. Traders not having any Experience, no Edge should never become a Full time Trader as and when they step into Trading. A regular paying  job  offers much more stability than  trading . There is no guarantee in stock market, please remember this. You could incur profit or lose depending on your kn...

Most traders are not undone by their method or system, but rather they are undermined by an internal struggle. Problems arise when the adrenaline starts pumping and emotions come into play; this is the time when bad decisions are made. Pride, Fear, Greed, and Hope are the most dangerous internal indicators to overcome. Pride  screams, “Don’t stop your loss! Prove you are right! It will come back, just wait.” Fear  advises, “Go ahead and take your profit quickly! We can’t let our winners run. Let’s take the small profit now, because the profit could reverse and we will end up with a loss.” Greed  assures, “This trade can’t miss! I am sure it will be a huge winner. Bet your whole account! We will be rich!” Hope   whispers, “I am not sure what a good entry is here, so I am just going to buy this stock and hope for the best.” As a Trader , if you cannot manage the above EMOTIONS , you can never manage your Money.

Here are ten reasons a Stop Loss is so important in trading: A stop loss defines your price risk by quantifying what price level you will exit a trade at.  A stop loss helps define your trade size. By knowing what price you are going to exit a losing trade you can set your position size based on your stop loss to define the size of your loss.  You can’t control how big your win will be or if your trade will hit your profit target but you can define the size of your loss by getting out at your stop loss price level.  A stop loss removes big losses from your trading strategy.  A stop loss frees up capital to move on to find winning trades.  You can save a lot of mental and emotional capital by getting out of a losing trade early.  The risk component of your risk/reward ratio is set by your stop loss and position size. Without a stop loss you can’t have a risk/reward ratio.  A stop loss caps your downside risk to a specific amount, this remove...

U.S Markets were down 2% in the First Half of Yesterdays Session but closed 1% higher. Asian Markets are Mixed. SGX Nifty is Trading near 9130. So far in May Series Nifty has been trading in a broad Range of 9000-9500. Within this Range Nifty is very Volatile. While Everybody was Optimistic about the 20 lakh crore ECONOMIC PACKAGE. For me it's a mere Eyewash. Markets has given all the Gains due to Economic Package sentiment and are now Trading even lower than their previous levels. WHO ( World Health Organisation) announced Yesterday that Corona Virus is here to stay for life. General Fact : EBOLA was the Virus for which the Vaccine had been developed the Fastest in the History of the World. The Vaccine took a record low timeframe of 4 Years to be developed and Implemented. Corona Virus Vaccine to be developed in 1-2 Years seems highly Unlikely. FII's have been Net Sellers Yesterday and have sold more than 2000 Crores. DII's were Net Buyers and bough...

US markets closed 2% Negative Yesterday and fell for the Second Straight Day. Asian Markets are Trading Negative. SGX Nifty indicating a Weak Start & Trading near 9200. Fed Chairman Mr. Jerome Powell commented Negative about the Economy. Trump pushed for Negative Interest Rates but Fed Chairman Denied it to be Implemented currently. 20 lakh Crore STIMULUS Package Gains wiped off in less than 24 hours of Announcement. Markets do not seems to be happy with details of Economic package details by FM. Personally , im not impressed with the Substance of the Package. It's good for some Sectors but there is no direct benefit. Total Package Details should be Announced on a Single day itself. No Point of Holding Press Conference for 5 consecutive days and giving out details each and everyday when there is not much substance in that. FIIs were net Sellers in the Cash Market Yesterday & it seems they were also not Impressed with the Package Announcement & Susbtance. Ex ...

U.S Market closed 2% Negative Yesterday. Asian Markets are Mixed. SGX Nifty is now Trading Near 9400. The bigger Range of 9000 to 9500 seems intact even now. Yesterday, news was announced that our Honourable PM is going to address the Nation. More Details are attached via images below. Announcement of Economic STIMULUS is surely Positive but the Fears for Extension of Lockdown still continues. States have given total Responsibility by the Centre to handle the Lockdown issues. Yesterday IIP Data (Index of Industrial Production) was announced & it's minus 16.7% which is the lowest ever in the History. Inflation also was at its Peak. Many Countries have started reporting fresh cases of Corona Virus. There is an increased fear of second Wave of Corona Virus infections. China have reported several fresh new cases of Corona Virus. Both FII's and DII's were net sellers Yesterday. Meanwhile , Vedanta has announced Delisting of its Shares from...

US markets closed on a Flat Note Yesterday. Asian markets are mostly Negative. SGX Nifty is trading near 9140. Down almost 80 Points as of now. Yesterday our Markets have tested the higher range band of 9450 and today we are likely to test the lower band of the Range     ie ,9100. Will be Interesting to see if we hold on to the lower range of 9100 today. Bank Nifty Punctured the Nifty rally Yesterday. It is highly Underperforming Compared to Nifty. ICICI Bank closed 6% lower Yesterday which led to high Underperformance in Bank Nifty. China have reported several fresh new cases of Corona Virus. While there is Optimism related to Economic STIMULUS , easing of Lockdown etc but the fear is relating to the second Wave of spreading of Corona Virus. Detailed Analysis of FII & DII Data Below: Auto Sector & Reliance were the star of the Show Yesterday. Maruti is commencing it's Manufacturing activities with 50% Capacity  Reliance features in To...

US markets closed a Percent higher on Friday. Asian markets are Trading Positive. Almost everyday we are witnessing gap up of more than 100 Points on SGX Nifty. SGX Nifty is up 120 Points & Trading near 9350 as of now.ie , 8.18 AM. Reliance is the star of the Show & has given more than 90% return from lows of March. Nasdaq has turned Positive for the Year & S&P 500 is up more than 50% from it's lows of March. ICICI Bank Announced Results over the Weekend and the Profits took a hit due to higher Provisioning. SBI Cards results were announced over the Weekend & Profits were down 66%. This was due to no Repayments from Card Holders as RBI has given 3 Months Moratorium Period. India may Announce it's Economic STIMULUS Package this Week. Several Meetings were conducted over the Weekend over the Discussion related to Economy. Bank Nifty is Underperforming Compared to Nifty and ICICI Bank might drive the Bank Nifty movement today if it reacts Violently ...

It is easy to become obsessed with adding to our trading arsenal with knowledge, books, chart patterns, indicators, moving averages, and gurus, that we forget to analyze what we need to remove from our plan. One of the largest determining factors as to whether a new trader ends up as a winning trader, is how well they can filter out what doesn’t help them make money. Traders can’t follow every indicator, trade every method, and endlessly add to their trading methodology. As traders we have to make choices. We must know what makes money and what to remove from our trading strategy. Give up your need to be right:  The market is always right, don’t strive to be right in your predictions and opinions. Strive to go with the flow of the market. Give up control:  No matter how long you watch a live stock stream, you have no power over the movements. Save your emotional energy by not trying to cheer on your positions and get wrapped up in every price tick. Give up blaming ...

US markets closed on a Positive Note Yesterday. Asian markets are also Trading Positive. SGX Nifty is trading near 9300. Expected a highly Volatile Market Yesterday. Market performed exactly opposite , were calm & silent Throughout the day with some Big swings in between. Nifty Traded in a range of just 80-100 points throughout the day Yesterday. One of the Weakest Expiry ever witnessed. Buy & Hold option Buyers were trapped Yesterday. This is According to the Poll done Yesterday on my Instagram Page. Nifty has been Trading in a range of 9100 to 9450. Within this Range Market is highly Volatile. FII & DII combined bought shares more than 23000 crores Yesterday. GSK sold ₹25000crore worth of HUL shares. GSK is not a FII, its investment comes under FDI. ( Foreign Direct Investment) So effectively FIIs and DIIs have sold shares worth ₹2000 crores yesterday. Expecting this Range to continue for coming weeks now. Expecting the Broader range to be between ...

US markets closed on a Flat Note Yesterday. Asian Markets are Trading Mostly on the Weaker side. SGX Nifty is down more than a Percent & Trading near 9150. Yesterday , During Market hours India Services PMI ( Purchasing Managers Index) came at 5.4, which is the lowest in History. Yes Bank Announced it's Quarterly Results Yesterday and the loss posted was more than 3500 crores. FII's were net sellers Yesterday & DII's were net Buyers. Yesterday was a high Volatile Trading day , no matter what you would have done Traded in Intraday you would have been wrong. Nifty & Bank Nifty made swings of more than a 100 Points for five times Yesterday on Intraday basis. Be Prepared for a much more Volatile Trading day today , Weekly Expiry will add to much more Volatility today. What to do on such days? Best Trade is to take Counter Trades near Boundaries and come out with what markets have to offer yiu. If you are Unable to understand the Moves which Market has to...

US markets opened 1.5% higher Yesterday but closed Marginally higher. Asian markets are Mixed. Yesterday our Markets opened with good Optimism but closed at the lowest point of the day. This was on the back of 500 Point fall on Monday. Nifty fell more than 600 Points in just 2 trading Sessions. Buy on Dip days Seem History & now we are turning into sell on rallies Market. Crude Oil Prices have risen by 25%. After Bitcoin , Crude Oil seems to be the Most Volatile Trading Instrument. FII's & DII's combined have sold more than 2000 crores Yesterday. As Mentioned in previous days Blog that Bank Nifty would continue to Underperform & this seems to be Continued till this Expiry. Bank Nifty has fallen more than 15% in just 2 Trading Sessions. Financials are the Weakest sector in the Current Market Environment. Petrol prices have been Increased by ₹8 / litre Yesterday and almost in all the States. I've Stopped Expecting anything Positive from this Government...

US markets ended Positive after Trading in Negative Terrain Yesterday. Asian markets are Trading higher. SGX Nifty is up 100 Points & Trading Near 9380. Bank Nifty Underperformed Nifty Yesterday & all the Financials have taken a massive hit Yesterday. All Put Options are Trading at more than 500% Premium which shows that Markets are highly Oversold in Short term. Specially the Financials. Almost all the Economies are Slowly opening up & relaxing the Lockdown. India has also Started to do the same but the Disturbing aspect is the Positive cases seem to increase Drastically after some Relaxations. If the same Continues , we might be forced to Lockdown again. VIX was up 10% Yesterday and Option Premiums were Considerably high. FIIs & DII's were net sellers Yesterday and have sold more than 3000 crores combined. Indian Markets are awaiting for the Economic Package to be announced by the Government. Bank Nifty would continue to Underperform this Expiry. Sold ...

April Expiry closed on an Optimistic note and we Witnessed series highs on both Nifty & Bank Nifty. U.S Markets were down 2% each on Thursday & Friday. Indian Markets were closed on Friday due to Maharashtra Day. Asian Markets are also Negative. U.S Futures are also Trading Negative since Morning. SGX Nifty is down more than 500 Points. Due to the lock down for entire month of April, Auto companies have declared zero sales. Our Government needs to Balance the Lockdown will Partial opening up of Economy Slowly as our Economy is in a total mess. U.S has openly announced that they would like to Investigate China Labs to check if they have Purposely spread the Corona Virus. All the Countries are in Support of U.S but China is Denting the same. Possibility of Global Tariffs , Trade Wars may also open & Economy may slow down further. Lockdown in India has been Extended by 2 more Weeks. Partial opening up of the Economy is being Witnessed but frightening part is Corona...

The World is Suffering & has been hit from Corona Virus. Each & every human being is being effected by Corona Virus in a way or the other & hence Stock Markets are no Exception. March 2020 was the Worst Month in the History of Stock Market. World Stock Markets Crashed by 40-50%. We Witnessed two lower circuits in the Month which isnt normal.  This Reaction of Stock Market was mainly because Stock Markets were Unable to assess the impact which could have been caused by Corona Virus & due to fear and Panic we Witnessed the Biggest Crash of all time. China & U.S were the Countries having witnessed the Corona Virus much Before India. So FII's ( Foreign Institutional Investors) were holding Short Positions of 88% when Nifty was Trading near 12300 ie , all time highs for our Stock Market. They could figure out that because of huge Demographic , Population and low health care Facilities , India would also be highly effected from Corona Virus. FII's have...