Nifty future premium is very high

For Dec, Nifty fut premium is 150 points higher than spot

i have seen 60-100 points at max but why this time, it is that high ?

More people are ready to buy at a higher premium for December month.
The buyers know something we don’t :smiley:

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Many are expecting a good rally by the end of the year.

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Yes, there is something called Santa Claus rally or Christmas rally. Fund managers in the western countries are given big bonuses at the end of the year, so it is said that they will rise the market. Market rises, their funds become more profitable, they will get good bonuses.

I think there is also some data for the December month for the past 10 years or so. Nifty rises.

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Let’s buy nifty and make some profit for Christmas.

You don’t buy based on hunches and gut feelings. This is not an action movie :grin:

These are capital markets, we buy based on some thesis, or data, or some technical setups.

Otherwise, someone will be ready for us, and we will be :fishing_pole_and_fish:

Answer lies within.

Yes, but I have not given any, nor have you.

Where is the data Gnome, where is it :grin:

In the last 15 years December month 10 green candle 5 red candle.
Interesting to note, in 2007 December good green candle, January 2008 big red candle followed by recession.

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So this is also probabilistic, we cannot say for sure. Also a profitable return does not mean 2 or 3%, it could be 1% too. So even it December will be profitable, it could be just 1% profitable.

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Look at this,
December 2007 close NIFTY 6138.6
December 2008 close NIFTY 2959.15

GFC happened, so Nifty was halved, no surprise. One month is enough to wipe out a year’s gains.

Why use sad emojis :grin:

Animals bite, markets fall, it is their nature :dog: :chart_with_downwards_trend:

As on most occasions, Jash hits it out of the park :grin: :smile:

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Tomorrow will nifty post an all time high? one dollar question right there

18400 CE had a very high open interest. Short covering once the price breached above 18400 and sustained.

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Dividend from nifty stocks is less in the month of December. Futures are always dividend adjusted. One more reason I can think of.

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With such high premiums , low VIX and event of state election lined up - some unwinding seems like my likely bet before dec 8th