Pre Market Report 13-Sep-2024

Summary

In the pre-market report, PR Sund discusses the US markets' recovery from a dip due to inflation data and recession fears. Despite a choppy Asian market, the Nifty is expected to open higher, influenced by domestic institutional selling. Sund maintains a bullish stance, with Nifty's all-time high and a target of 26,000. He reflects on the market's volatility, the importance of stop-loss for traders, and plans to sell 25,000 put options. The video concludes with a cautionary note on the unpredictability of the market and the impact of US economic events.

Takeaways

• 📈 US markets closed higher despite inflation data being higher than expected, indicating a resilient bull market.
• 📉 Markets fell over 10% in August due to recession fears but recovered significantly in the second half of the month and in early September.
• 🌐 Asian markets are mixed, with Nifty expected to open higher despite a potential consolidation or minor reversal due to a significant rise the previous day.
• 📊 Nifty experienced a significant increase, with domestic institutions likely booking profits, leading to a drop in the last minute of trading.
• 🔝 Nifty hit a fresh all-time high, with 26,000 being the next target, showcasing the strength of the bull market.
• 📉 Technical analysis suggests that the Nifty should not close below 24820, which it did not, indicating a strong market recovery.
• 💡 The speaker acknowledges the difficulty in predicting market movements, especially after a sudden 500-point rise in Nifty.
• 🚫 The importance of setting stop losses is emphasized, as not doing so led to significant losses for the speaker.
• 🔮 The speaker plans to sell 25,000 put option, indicating a bullish stance with a good premium, despite market volatility.
• ⏰ The upcoming US Fed event and market reactions are anticipated to create opportunities for traders to capture, highlighting the need for vigilance.

Q & A

What was the recent trend in US markets according to PR Sund's pre-market report?

US markets closed higher, recovering from a drop of over 10% in August due to recession fears, and have almost fully recovered by the end of the month and into September.

What is the difference between a bull market and a trader's market according to PR Sund?

In a bull market, it is difficult for traders to make money, but investors can, as opposed to a trader's market where traders can profit from volatility.

Why did the Asian markets show mixed results as per PR Sund's report?

Asian markets have been mixed for the last six months, with Fridays typically being trending days. However, after a significant rise in Nifty, there was an expectation of consolidation or a minor reversal.

What was the expected opening for the market according to the GIFT Nifty, as mentioned by PR Sund?

The GIFT Nifty indicated an opening about 30-40 points higher for the market, showing a 50-point gap-up.

Why did Nifty fall in the last half an hour of trading as per PR Sund's analysis?

Nifty fell about 88 to 100 points in the last minute of trading due to domestic institutions booking profits, leading to a sell-off of about 1,800 CR.

What was the new all-time high for Nifty, and what is the next target according to PR Sund?

Nifty hit a fresh all-time high, and the next target is 26,000.

What technical analysis did PR Sund follow that led to a bullish view, despite market fluctuations?

PR Sund's technical analysis indicated a stop loss at Nifty closing below 24820, which did not happen, leading to a continued bullish view.

What was the impact of the US economic recession fear on Nifty's performance?

Despite US economic recession fears causing a market fall, Nifty found support around 25,000 and recovered, indicating resilience.

What is PR Sund's weekly view and the expected range for Nifty?

PR Sund expects a range of 25,000 to 26,000 for Nifty this week, with potential for 600 points up and 400 points down.

What advice does PR Sund give to traders and investors regarding stop loss?

PR Sund advises traders to keep a stop loss, while investors do not necessarily need to, highlighting the importance of risk management.

What was PR Sund's strategy for the upcoming week, and what was his mistake in the previous session?

PR Sund planned to sell 25,000 put option for good premium. His mistake in the previous session was not putting a stop loss, leading to a significant loss.