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Mid Market Report, April 1, 2014

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April 01, 2014
6 comments
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April 1, 2014
Time: 12.45 pm

Mid Market Report:

  1. Markets once again trading below 6720.
  2. RBI policy was in line with expectation.
  3. But Banking stocks are falling.
  4. Our markets are underperforming other markets.
  5. But one good news for option sellers is that VIX has come down.
  6. There is a profit of Rs 20 per share in our weekly recommendation of selling Bank Nifty 11000 Put option and 14200 Call option in just two trading sessions.
  7. This is the power of VIX.
  8. Europe has opened positive.
  9. Still there is no improvement in sentiment here.
  10. There may be some buying towards the end by FIIs.




Written By

Options Trader and Trainer

Comments

  1. Unknown1 April 2014 at 13:08

    Technicals already indicated PSU Banks at resistance and likely to take a breather.

    I have seen few technnical analysts (mostly friends in moneycontrol), they are spot on 90% of the times. PSU banks took res @ 2 yr moving avg. 2570-2590 is the next level to watch out for support.

    ReplyDelete
    Replies
    1. Unknown1 April 2014 at 13:10

      Having said that one need 2 yrs experience minimum and hard work to sustain in markets. Technicals alone won't help people earn money in stock markets.
      Those who earn money are mostly Option writers, those who trade 5-10 times in a month.

      Delete
    2. P R Sundar1 April 2014 at 18:14

      We have made 4 lakhs today. This is just VIX trade. After the RBI policy, VIX was expected to fall. For example, Bank Nifty closed around 12800 yesterday. If you have sold 1180 Put and 12800 Call (1000 points both sides which is a reasonable distance) you would have made Rs 1350 per lot, which is a return of about 7% in just one trading day. See the best part, Bank Nifty fell by 150 points, still you made profit in 11800 Put. Option buyers would have lsot heavily today.

      Delete
    3. Unknown1 April 2014 at 21:09

      I completely agree, VIX is used to measure the market sentiment. Option writers are always the smart people.
      Not everyone can give you 10 Lac to handle their account, I would suggest you to start some mutual fund scheme, you can collect money from public and give 18-36% returns per annum.

      Delete
  2. greatearth1 April 2014 at 17:38

    Hi,
    Pls update your weekly reco in daily basis. It ill highly helpful for who dont have knowledge about technicals.thanks.

    ReplyDelete
    Replies
    1. P R Sundar1 April 2014 at 18:17

      Thanks for your suggestion. If I repeat the same thing every day, it will be 1. boring, 2. People will think that we keep on telling that we are doing a good job on every day basis (though it is true, telling daily may irritate people). Since this is a blog and old data is available just a click away, people can always check our weekly recommendations. In fact, we have been giving weekly recommendations since September 22, 2013 with 100% success rate so far.

      Delete

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