Market Today

Today's Market was flat till 1.30 pm and latter part of session we had a huge volatility that led to market crossing critical resistance point of 5180 as told on News in the  morning. So what exactly made this market to fall  in the last  hour,We know market movement is based on supply and demand. At first instance it appeared to me that "EURO Crisis" which is happening in that region made our index to fall ,mean investors are afraid of index going down anytime soon and sold of in a hurry and might have exited once it breached 5200 . But of late FII are buying into nifty for quite some time inline with corporates showing good results with few exceptions and we had 30+ consecutive net buy sessions by FII..that indicates FII are not here to sell anytime soon..So what Exactly made this fall ? who knows? only thing we can do is speculate and see if we are lucky ...

So here is what i speculate of today's happening

Euro region has few problems which i clearly don't understand apart from the budget deficit which i hear in news and amount of money needs to rollover to close that GAP..Of which Greece is having a major problem for now and it might go for bankrupt and taking a few countries along with it . This will make demand for metals to fall . why metals? Metals are basic  raw material for majority of  industrial products..right from toothpaste to buildings...So fear of Greece and weak demand for metals made most of the metal stocks investors to close there positions which in turn gave pressure to other sectors and made a weak market sentiment.

But other thing which is coming into my mind is ..recently metal producers(Steel Mining companies went for Price hike of metals) Now what made them to increase the price at this time? Are they Expecting increase in Demand for metals in coming days? If so then today's fall might be reversed in coming days(How many Days?one month?..Two months?... :) who knows)

More Statistics coming in another post later in the day

Playing with fire--by Grantham a must read

 It was a not a great weekend though i will remember it for years to come(its not related to IPL ok)..anyway that's not what i  intended to post here

While surfing i came across this guy by name Grantham Jeremy , chairman of
a Boston based AMC well known among institutional investors, but relatively unknown to retail investors.
He has a reputation over his long career by correctly identifying speculative market "bubbles" as they were happening and steering clients' assets clear of impending crashes

Most of his letters are read by Wall Street  and here is what he says in latest quarterly report in the link below
Playing with Fire

Take some time and read in particular if you invest in stocks

More can be found in this article
http://www.businessinsider.com/henry-blodget-grantham-this-crazy-market-could-go-roaring-right-back-to-its-old-highs-2010-4

For a Change

 Just came across this Telugu song in you tube....It will be somewhat touchy for people who miss there dearest ones

http://www.youtube.com/watch?v=no3mSlynVhs

Musings of Options Trading..loaded with confusion,absent mindedness and excitement

Day:22-April
Location:Same Office Desk


Its another day of confusion , absent mindedness and bit of excitement coming together on same day
First it started with myself as usual at 9.30 am, got up switched on mini with  eyes closed..and as u know opened rediff.com to see the initial trend of market and was not surprised to see it in flat below previous close value . opened cnbc and same guy udyain with his usual stare at monitor told about the rising stocks ,falling stocks and upcoming results....

Have seen a tamasha for first time..they called up a young CEO of ZEE News am not sure of his name..and they (Udayain and some other lady) asked him about to tell about this companies performance this year and future growth prospects...and as u know CEO will generally say that there growth is better than industry growth and it will be same going forward..blah .blah...Now this Growth caught the attention of lady and she asked him to elaborate on this revenue ..like which channel in ZEE News is giving how much revenue..(ZEE News is DTH chanel and it has few other regional channel under its belt and its a paid Hindi news channel )... And the CEO was bit hesitant to provide these details..now CNBC people tone changed a bit and were asking him questions in a interrogation way and that guy was feeling uneasy ..and he said ZEE news delivers information to public in the same way other news channels does...this brought CNBC people a bit angry and the CEO dared to say that you(TV18.....CNBC is part of TV18) also does the same...this made the CNBC people to close the call the ZEE News CEO...vow..what a pity...fighting over media...any way...that's not what i  am expecting  from news channel.....

so i started looking at options value and still NIFTY 5200 put was around 25 to 30 and already i am holding it at 40 rs thought of averaging it and the same way nifty 5300 Call was around 20 Rs holding it 25...
This happend at A u can see it in the picture attached ...and its not making me intrested somehow...so while watching the news..i slept off again till 11.30...

Surprised to see the market went up by .8% i guess some confusion would have happened and market went up and nifty 5200 put decreased to 15 i guess..and now i am concentrating 5300 put as it came to 60 Rs...so at location B (in the pic) i got 5300 put at 55...

Now i have at B position in figure
5200 put @ 40
5300 put @55
5300 call @25

total : 5500
so i started to office..and by the time i came here...

1 lot 5200 put @ 10
1 lot 5300 put @35
1 lot 5300 call @45
total : 4000
but disappointed as i was in loss

and at position C  i aggressively purchased one more put of 5300 at 30 rs...and sold 5300 call which gave me return bit it could have been given much more

Now the real excitement happened after me coming from lunch and market is in final 30 mins of trading and the slide started ...market was falling with a slope of near 90( bit of exaggeration)..and all of a sudden from my loss positions i was into profit in few mins..

This is at position D
1 lot 5200 put @ 40
2lot 5300 put @80
total :10000

total profit of 4500 rs MTM

in a bit of madness i just closed 5300 put at 60 Itself and closed 5200 put at 41
effectively trimming my profits...Lesson learn

thats all for todays confusion and excitement and coming to Absent Mindedness

First  :
i started to office i locked my room and came down..then i remembered that i didn't do brush in morning ..hahah .so started back again to my room ....

Second :
After brushing i locked room and started to office again...after going some distance i have a habbit if eating choclates and to take money  i kept my hand on my back to my surprise there is no purse ..hehe..again i went back and took the purse and started to office again...

Steel Index

 I found this in bloomberg website which tracks steel companies in europe.

Brief description of this index :

The Bloomberg Europe Steel Index is a capitalization-weighted index of all companies involved in the steel sector of the Bloomberg Europe 500 Index. The index was developed with a base value of 100 as of December 31, 1996. The parent index is BE500. 

http://www.bloomberg.com/apps/cbuilder?ticker1=TPIRON%3AIND


Now what we can do is if this can give any clue to metal companies which are trading in india , hope i  will track this index with the steel sector in india and will publish in another post