Most base metals held on to gains owing to softer dollar and surprise expansion in China’s Caixin manufacturing PMI, this week.
Try to buy a Put option with the strike price that is closest to the current market price of the stock with the longest available expiry.
The upcoming week can be approached with a low-risk strategy like modified Put Butterfly in Nifty.
Cooling volatility, rising Put-Call Ratio, increasing FII Long-Short Ratio trend, and build-up of longs in May expiry, indicate that the Nifty uptrend is intact and the overall sentiment is positive.
US Core PCE is expected to remain unchanged at 0.3 percent MoM and 4.3 percent YoY for April. If it is unexpectedly high, it may prompt the Fed to keep interest rates higher for a longer time, leading to an upside in the dollar which will weigh on commodities
When India VIX is trading very low, like now, and option writing is really unattractive, turn to credit spreads
The upcoming week can be approached with a low-risk strategy like modified Put Butterfly in Nifty.
FOMC meeting minutes, Fed’s preferred PCE price index and preliminary PMIs from US, UK and Eurozone will be in focus for the coming week.
For option buyers and sellers, the spreads do reduce the profit but they do improve profitability for the option writer while saving time-related losses for the option buyer
Uncertainty regarding the US debt ceiling lingers since meeting between the President Joe Biden and House Speaker Kevin McCarthy has been postponed until next week
Range bound mover Volume PCR has a very high probability of turning down from a recent top or turning up from recent bottom.
WTI Crude oil is trading close to the 200 period simple moving average support near $66/bbl. A break below the said support on a daily closing might pull the price further lower towards $62/bbl.
Options provide a perfect way to tackle the fear as well as lack of confidence.
The upcoming week can be approached with a low-risk strategy like modified Call Butterfly in Nifty.
An investor should separate emotions from investment decisions and take a Disciplined approach for allocation and exit.
The stress in the mass consumption segment is beginning to show up in GDP growth as pent-up demand from high-end consumers reach saturation.
FOMC and ECB will be in focus next week, both widely expected to deliver a 25 bps rate hike. We expect gold prices to ease a bit ahead of the FOMC, as Fed might reiterate higher rates for longer and no rate cuts in 2023. Having said that, any dovish tilt in comments might be an upside trigger for gold prices.
Reading the Open Interest data long with Price can help in getting to know the strength of the price move.
India VIX is currently placed just below 11, which is near historical lows. A lower VIX could mean that the market is not expecting any significant risk in the short term due to any big event scheduled ahead.
The upcoming week can be approached with a low-risk strategy like modified Call Butterfly in Nifty.
As of now, economically sensitive commodities are struggling for direction as participants assess the latest inflation data and await more data before the major central bank meetings in the first two weeks of May.
The current market environment and the auspicious occasion may be considered as an opportunity to remain invested in Gold rather than waiting for larger correction in the prices.
The upcoming week can be approached with a low-risk strategy like modified Call Butterfly in Nifty.
Chinese economic data’s will be keenly awaited as continued expansion in economic activity may hint towards first signs of an even recovery.
The price difference between the current market price of the underlying and the strike price determines the moneyness of the option and also the option premium.