12th Dec 2024 — PostMortem on Nifty — An unusually calm week after a violent expiry on 5th —…
Nifty Stance Neutral ➡
After last week’s rout, I had gone long on the index. Now when I look back, it was a poor decision to make. The reasons for going long was mostly because of the price action on the 5th of December when we had that humungous rally.
This week we had an unusual flat price action with no real movement whatsoever. I read somewhere that the regulators are really concerned and may investigate the previous week’s expiry.
https://x.com/viswaram/status/1866380880438284639
Coming back to business, this week we dropped 163pts ~ 0.66%. The week’s low was hit on the 10th of Dec, and I sincerely hoped we may get a fall yesterday and today. On the 11th we rose a bit and today we fell a bit and overall the week was flattish.
Looking at the options premiums for the next week, I do not see any major directional movements and hence I am going into a neutral stance. The moment a directional bias appears, I will notify you via the TradingView minds section. I will also publish my directional option strategy as well.
Another major development we saw this week was the change in RBI Governor, Sanjay Malhotra has already assumed office. Since he is not an economist, his priorities may be in diplomatically handling the political stability along with monetary policy.
An economist on the other hand would have focussed only the monetary aspect. Although the previous Governor had done a credible job for all the rich and affluent people — the stock market at lifetime highs, companies reporting excellent profits, reduced slippage at the banks, etc. I am worried about the class of people who cannot find work or even cannot afford food. RBI may not impact the poor directly, but their monetary stance and the guidelines for the PSUs can be revised to cater to the poor and needy.