RBI Governor surprised everybody, though there is about 50 point up-move after the announcement, one should be very careful. Now there is euphoria in market, perhaps lot of domestic investors would jump in. FII sold in Futures!. IVs and option premiums of stocks are going down even after discounting for last days of the month..
One of the reason why RBI would have not hiked rate could be, in analysis of RBI, there could be high likelihood of tapering to start in December/January. If that happens, anyway there will be liquidity crunch and there is no need of rate hike to curb the liquidity. As per commentary by RBI, investors are cautioned if there is no brake on inflation, RBI anytime will hike the rate. This could mean in other words if FED does not do anything on Thursday we will do it soon!
Hold all bear and bull positions till Friday morning. Maybe buy few more OTM CALLs and PUTs if this month's profit permits.
For example buy 1140 LT CALL at around Rs. 6-7/-
buy JINDALSTEEL 260 CALL at around 2-2.50
HOLD IDFC 100 PUT or average it as it is very cheap now, if IDFC goes below 104.25 it will slide down quickly towards 101.
Buy 11900 CALL of BANKNIFTY at around 65 and buy 11100 PUT of BANKNIFTY at around 60-65.
Choose any one or two above options and exit on Friday morning.
Even if there might not be huge impact of taper by FED, market could show knee-jerk reaction and could show gap down opening/gap up opening on Friday morning. Hence this preparation.
Disclaimer: This blog does not take any responsibility of your profit/loss.
One of the reason why RBI would have not hiked rate could be, in analysis of RBI, there could be high likelihood of tapering to start in December/January. If that happens, anyway there will be liquidity crunch and there is no need of rate hike to curb the liquidity. As per commentary by RBI, investors are cautioned if there is no brake on inflation, RBI anytime will hike the rate. This could mean in other words if FED does not do anything on Thursday we will do it soon!
Hold all bear and bull positions till Friday morning. Maybe buy few more OTM CALLs and PUTs if this month's profit permits.
For example buy 1140 LT CALL at around Rs. 6-7/-
buy JINDALSTEEL 260 CALL at around 2-2.50
HOLD IDFC 100 PUT or average it as it is very cheap now, if IDFC goes below 104.25 it will slide down quickly towards 101.
Buy 11900 CALL of BANKNIFTY at around 65 and buy 11100 PUT of BANKNIFTY at around 60-65.
Choose any one or two above options and exit on Friday morning.
Even if there might not be huge impact of taper by FED, market could show knee-jerk reaction and could show gap down opening/gap up opening on Friday morning. Hence this preparation.
Disclaimer: This blog does not take any responsibility of your profit/loss.
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