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Neeraj Chopra won India's first silver 🥈 of Olympics 2024 last night 🫡💯 He was beaten to gold by Arshad Nadeem of Pakistan, who three a monstrous 92.97, an Olympic record 🇵🇰 Neeraj's second throw of 89.45 won him the silver 🇮🇳 Neeraj joins the elite list consisting of PV Sindhu, Sushil Kumar, Manu Bhaker - individuals who have 2 Olympic medals in individual events 💯🫡 ⭐ The GREATNESS of Neeraj lies in the fact that: ✅ Even on his bad day, he ends up winning a Silver for India. ✅ The country is upset on a silver because the level he's set for himself. His consistency is UNREAL: 😲In the 3 year period from Aug 2021 to Aug 2024, Neeraj Chopra hasn't finished outside Top 2 in 17 competitions he took part in. These 17 events include 2 Olympics, 2 World Chps, Asian Games and multiple Diamond League and Gold-level WACT meets. Consistency of the highest order🫡 All in all, a great great day for the subcontinent. Rarest of moments when you see India Pakistan on a podium together 🙌 Sportsmanship beyond excellence 🇮🇳🇵🇰

Why Japan Nikkei dropped more than ~10% last week and ~12% today. Even Japan has fallen by ~18%, while South Korea has fallen by ~8% today. Other global markets are also in deep Red. Japan has had negative or zero interest rates since the 1990s, which Japan adopted to combat deflation and economic stagnation, boosting spending and investment. Hence, Institutions engaged in the "carry trade" to make money from this. In this way, investors were making money through both currency devaluation and asset price appreciation. In the carry trade, investors engaged in "Arbitrage" where big buyers would buy Yen at the cheapest rate, convert these Yen into US dollars, and invest in US equities and bonds. This was "Financing" at the cheapest rates. For example- Before 2020, the Federal Reserve raised interest rates to over 2.5%, while the Bank of Japan left interest rates at -0.1%. This means there was a spread of 2.4%. So, institutions borrowed the Yen and invested it in U.S. bonds and equities, making money from both currencies as the Yen weakened due to increased demand, and the underlying assets. However, following the pandemic, Japan experienced inflationary pressures due to supply chain disruptions and rising commodity prices. As a result, the Nikkei reached an all-time high in more than 30 years. However, when the US Fed started increasing rates in 2022, the Yen began to depreciate significantly, falling from around 103 in March 2023 to 160 by June 2024. (Refer to Attachment) To counter weakening currency, The Bank of Japan (BoJ) raised its key short-term interest rate from the previous range of 0 to 0.1% set in March to around 0.25% at its July 2024 meeting. As a result, the Yen appreciated ~10% in July. This has put an end to the "Carry Trade", meaning that investors are closing existing positions as the cost of borrowing in the Yen has risen, resulting in a massive sell-off in Japanese and US stock markets. Hence, money is flowing out of the US, where Japanese investors are among the largest holders and major lenders to companies, putting pressure on Wall Street. Approximately $4 trillion is at stake, and further Yen appreciation could lead to more unwinding. A rise in the yen also hurts Japan's stock markets, which are dominated by export-oriented companies, causing a domino effect. credit: MADHVENDRA .

Why Are Global Stock Markets in Red? Global stock markets are experiencing significant declines. Two Major Reasons: Liquidity & Macros 📌 Liquidity Issues: - Cheap Borrowing: The USA and Japan have historically been sources of cheap borrowing, with Japan offering near 0% interest rates for decades. - Yen Strengthening: Recently, the yen has strengthened by about 13% since mid-July. This sudden change and a potential increase in Japanese interest rates create a liquidity crunch. - Carry Trade Unwinding: Global investors, who preferred the yen for carry trades due to its low borrowing cost, are now unwinding these trades to cut losses, contributing to market declines. 📌 Macro Factors: - Recession Fears in the US: Growing concerns about a potential recession. - Uncertainty About Rate Hikes: Investors are uncertain about future interest rate hikes. - Geopolitical Tensions: The Iran-Israel conflict adds to the uncertainty, prompting investors to seek safer investments. Credit: Parth Sanghvi

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Top 10 Companies by Valuation 1. Apple - $2.35 Trillion 2. Microsoft - $2.33 Trillion 3. Alphabet (Google)* - $1.35 Trillion 4. Amazon - $1.23 Trillion 5. Tesla - $844 Billion 6. Meta - $750 Billion 7. NVIDIA - $648 Billion 8. TSMC - $624 Billion 9. Berkshire Hathaway - $574 Billion 10. Toyota - $563 Billion Note: Valuations are subject to change and may not be up-to-date.

Recession in US: What its mean for indian? A recession in the US can have significant implications for India due to the interconnectedness of the global economy. Here are some key points on what it could mean for India: 1. Exports and Trade: The US is a major trading partner for India. A recession in the US can lead to reduced demand for Indian goods and services, impacting India's export sector. 2. Foreign Investment: The US is a significant source of Foreign Direct Investment (FDI) in India. Economic downturns in the US may lead to a reduction in FDI, affecting various sectors in India. 3. Remittances: Many Indians work in the US and send remittances back home. A US recession can result in job losses or reduced earnings for these workers, leading to a decrease in remittances to India. 4. Currency Fluctuations: Economic instability in the US can lead to fluctuations in the exchange rate between the Indian Rupee and the US Dollar, impacting India's import costs and foreign debt repayments. 5. Global Supply Chains: Disruptions in US supply chains can have a ripple effect on global supply chains, including those that involve India. This can affect manufacturing and production in India. 6. Investor Sentiment: A US recession can lead to negative sentiment in global financial markets. This can result in capital outflows from emerging markets like India, causing volatility in Indian stock markets and currency. 7. Oil Prices: The US is a major consumer of oil. A recession can lead to lower global oil demand and potentially lower oil prices. For India, a major oil importer, this could be beneficial in terms of reduced import bills. 8. Policy Responses: The Indian government may need to implement fiscal and monetary policies to mitigate the impacts of a US recession, such as stimulus measures or interest rate adjustments. While a US recession poses challenges for India, it also presents opportunities for strengthening economic resilience and diversifying trade and investment partnerships.

SEBI consultation paper on F&O 7 key proposals ! 1. Rationalization of strike price for options: Current practice: Nifty and Bank Nifty options strikes cover approximately 7-8% of the index movement on any given day, with additional strikes added as needed. Nifty has up to 70 options strikes, while Bank Nifty has around 90. Proposal: Introduce no more than 50 strikes at the time of contract launch. The strike interval should be uniform near the prevailing price (around 4%) and may extend up to 8% if necessary. 2. Upfront collection of options premium: Current practice: Margins are collected for futures positions on both the long and short sides and for short positions in options. However, there is no requirement for the upfront collection of options premiums from buyers. Proposal: Collect options premiums upfront. 3. Removal of calendar spread benefit on expiry day: Current practice: Calendar spread margin is applied on expiry day for F&O positions with different expiries, significantly reducing margin requirements. Proposal: Eliminate calendar spread margin benefits for contracts expiring on the same day. 4. Intraday monitoring of position limits: Current practice: Position limits are monitored at the end of the day by Market Infrastructure Institutions (MIIs). Proposal: Monitor position limits for index derivatives on an intraday basis, with a suitable short-term solution and a gradual approach to full implementation. 5. Minimum contract size: Current practice: The minimum contract size requirement of Rs 5 – Rs 10 lakh was established in 2015. Proposal: In Phase 1, set the minimum contract value at the time of introduction between Rs 15 – Rs 20 lakh. In Phase 2, after 6 months, propose a minimum contract size of Rs 20 – Rs 30 lakh. 6. Rationalization of weekly index products: Current practice: The weekly expiry of index derivatives leads to an expiry every single day of the week across indices/exchanges. Proposal: Weekly expiry for one benchmark index per exchange. 7. Margin Increase Approaching Contract Expiry Current Practice: No additional margin is required during the final two trading days before expiry. Proposal: An additional 3% Extreme Loss Margin (ELM) should be collected at the beginning of the penultimate day before the contract expires. On the final day, the ELM should be increased to 5%. credit: Srikanth Rayipati #markets #investing #derivatives #stockmarket

Garman-Klass Volatility Estimator for Options Trading Volatility is a key input in the pricing models of options, such as the Black-Scholes model. It reflects the market'sexpectations of the underlying asset's future price fluctuations. Higher volatility leads to higher option premiums, while lower volatility results in lower premiums. Therefore, a more accurate volatility estimate can significantly enhance an options trader's ability to price options correctly and develop effective trading strategies. 🚀The Garman-Klass volatility estimator is a technique used in financial markets to measure the volatility of an asset's price. -Unlike simpler methods that use only closing prices, the Garman-Klass estimator incorporates intra-day data, specifically the high, low, opening, and closing prices.  -This approach provides a more accurate representation of an asset's volatility, making it valuable for traders and financial analysts. ✨ Advantages ⚖️Higher Accuracy: Considering the high, low, opening, and closing prices, the Garman-Klass estimator captures more information about the price movements within a trading period, leading to a more accurate volatility estimate. ⚖️Better Risk Management: A more precise volatility measure helps traders and risk managers make better-informed decisions regarding risk exposure and position sizing. ⚖️Enhanced Trading Strategies: Traders can develop more robust trading strategies by utilizing a comprehensive measure of volatility that accounts for intra-day price variations. Implementation Steps 🔧Data Collection: Gather the high, low, opening, and closing prices for the asset over the desired period. 🔧Apply the Formula: Use the Garman-Klass formula to calculate the volatility for each trading period. 🔧Analysis: Compare the Garman-Klass volatility with other volatility measures (e.g., historical volatility, Parkinson estimator) to evaluate its effectiveness. Practical Impact on Options Trading 💼 Options Pricing: Accurate volatility estimates are the backbone of pricing models like Black-Scholes. The GK estimator, with its comprehensive data approach, ensures that your pricing is as accurate as possible, helping you to avoid costly mispricing errors. 🛡️ Hedging Strategies: Understanding potential price movements with greater precision allows traders to hedge their positions more effectively, protecting against adverse market shifts. 📈 Strategic Decision Making: A nuanced view of market volatility helps traders make more informed decisions, whether it’s about entering a new position, adjusting an existing one, or determining the right time to exit. Conclusion It provides a comprehensive and accurate volatility measure that can significantly enhance your trading strategy. Credit: Jasmin Malhotra #markets #finance #stockamrket #technicalanalysis #TRADING #investing #optionstrading #stocks #money