Wise Investing

Hello friends  Did you realize that a one-lakh rupee investment in Nifty last year would today be worth Rs 99,000? That's precise. The latest sell-off in global shares has shattered all of Nifty's year-to-date gains. Despite a minor improvement in May, retail inflation remains significantly above the Reserve Bank of India's (RBI) tolerance ceiling of 6%. A twin whammy of rising commodity prices, particularly for oil, and a record-low Rupee has only exacerbated the situation. Experts believe that the RBI would raise interest rates even higher to keep inflation under control, which would be a tremendous disadvantage. The United States is facing the same issue but on a much larger scale! The short-term US 2-year Treasury yield surpassed 3% for the first time since the Global Financial Crisis of 2007. Rising short-term rates reflect sour long-term market sentiment, implying that investors are losing faith in the US market's prospects. This is a traditional indication of a r

  The Most Profitable Business on Earth Today! If you are thinking it’s lithium mining, then you are wrong. It’s the oil refining business that is minting a crazy amount of profits today! Let us understand! What are 3-2-1 crack spreads? The crude oil is refined into different products like gasoline, fuel oil, diesel, etc. by the refining companies. It’s these end products that we use in our daily lives. To evaluate the profitability of the refining business, analysts calculate 3-2-1 crack spreads. These are calculated as: 1) Buying 3 barrels of crude oil 2) Selling 2 barrels of gasoline 3) Selling 1 barrel of fuel oil The higher the spreads, the more profitable the refining business. What has happened to the 3-2-1 crack spreads? Lately, the 3-2-1 crack spreads have skyrocketed to all-time high levels of $55-60 even though the crude oil has been in a tight range of $100-$120. What are the reasons for the rising spread? Market participants say that multiple shutdowns of refineries due to

 Hello friends  Yet another interesting topic for you  PRICE OPEN INTEREST INTERPRETATION Increase in Price Increase in OI Indication of new money coming and indicates the further continuance of uptrend Increase in Price Decrease in OI The increase in price is due to short covering of positions Decrease in Price Increase in OI The decrease in price is due to newly built short positions and further weakness is predicted Decrease in Price Decrease in OI Traders unwinding their long positions by selling existing contracts Option Chain Nifty – Interpretation of Open Interest: How to interpret “Nifty Option Chain: Open Interest | Put Call Ratio Tracker”? In Summary: High PCR means the market is bullish because the option writers are inclined to write puts. Low PCR means bearish sentiment – because option writers are not willing to write puts but instead write calls. The put-call ratio (PCR) is a popular tool specifically designed to gauge the overall sentiment (mood) of the market. The rati