We are in blue sky territory, meaning that the market is in another uptrend, and can continue for some more time.
If you remember our last update on Friday, I hinted that markets could go higher, and we're seeing that now. The target is...
With such fast moves, playing strangles or straddles is really painful, because you don't see the theta decay as you would like.
For e.g. today, we have CEs moving higher, but the PEs are not moving despite us taking them. So this could indicate to us, that sellers are hesitant to sell PEs, incase this short covering doesn't last. Most likely a lot of people were short, looking at the trend line, and now they're covering their positions as the pain increases.
We stick to the strategy for adjustments (to know more, subscribe to become a member).
Mondays, I've noticed that once a big move of 200 points comes about, the market doesn't go down. So if ur short, ur going to have to bear the loss.
The only thing that can bring down the market is some really bad negative news, like a war or something. Until then, betting against India is going to be a tough contrarian game.
- Looks like PEs are strong 44000 & 43000. Whereas there is a good amount of activity at 45000CE as well as 45500CE and 46000CE.
- August presents a slightly different picture, we're seeing PEs written at 44000, so that's going to form a good support.
- The India Vix has increased by 10%, which is not an indication of a bull run, there seems to be some fear in the market.
And there you go...
- The Vix moving up, was an indication of a weak market, despite the BN moving up by 200-300 points.
- Well, as mentioned earlier, we start the day with a gap up, and then hold that for the rest of the day.
Tomorrow will have to see whether this holds, or goes higher. Bias to higher side, until we reach the 45700 level. Gut feeling: this will hold until Thursday expiry, and then we see a correction!