US inflation data was far worse than what was expected. Now there are rumors that the Fed will now have to hike rates by 75bps. The stock market is already showing that. Today morning, people were eagerly waiting for the markets to be opened so that they can sell anything and everything.
CPI index rose by8.6% which is the highest in the last 40 years.
Gas price has hit $5 per barrel which is the highest the US has seen.
Tesla is spliting it shares. But now that may not be a big news in today's market.
Dow futures are down by 300 points after falling 800 points on Friday. So today markets will be down and out.
So people who entered during the covid pandemic in 2020 will feel the pain for the first time. Most of the IPO which came are below its issue price. The bull market gave way for the promoters to exit and dump it on retailers. Now, you can be sure that some of these will never reach their peak prices. The moral is, that you need to hold your horses from investing in a bull market, but it is difficult to be away from the temptation which will be created in the market.
Everyone was expecting a crash so that they can invest. I am sure, now nobody has the guts to enter and all analysts will say that you should not catch the falling knife. Today nifty will be below 16k. Many of the blue-chip stocks will be at a discount from what it was at 18k. One can invest 10% of their capital at this point. Nobody knows to what level this will fall or will there be recovery. SIP and SWP is the best way to survive in this market.
Tomorrow you have the FED meet and everyone knows that 50bps is the minimum hike that it will do. Now, 50bps is good news and anything above that is bad news for the market. Usually, the fed brings good news to the markets, and most of the time, markets have recovered after FED but this time can be an exception. We will be reacting for that on Thursday which is our expiry.
MY TRADES
- I thought some relief will be there when inflation data was out on Friday. So I bought 1 lot of nifty futures. Today banknifty might gap down 500 points. I shared the adjustment strategy which I will be doing
- +4 banknifty futures
- -5 X 34200ce(July series)
- I expected 16k to be supported. But it looks like, today that will be taken out with ease. I had sold some quantity of PE for this weekly expiry. Today all those will be in danger and I need to take action today.
- Today I will be selling some stock PE and will be willing to take delivery if it becomes ITM.
- US markets fell drastically on Friday. Dow fell 800 points. Nasdaq lost 4%. Today the dow futures is down 300 points and Nasdaq is down more than 3% again.
- Europe also closed in the red.
- Today the Asian markets are in the deep red. SGX is suggesting a 300-point gap down.
- Crude is at $119.
- $ is almost Rs 78
FII AND DII
- For this month, FII have already sold more than 14k cr. They are using all opportunities to sell
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