Kim Jong-Un is at it again!! The missile which was missing for a while is back! North Korea releases a intermediate ballistic missile that zooms past Japan and shows to the World that he has the capability of bombing any part of Japan. South Korea responds by firing its own missile into Korean sea. Sitting miles away we might be laughing at it but if you see most of the Asian markets are selling big time. First, this missile firing is not a joke. North Korea wants attention, it wants recognition and it has destructive powers and it can use them.
It’s because by firing a missile on Japan North Korea loses nothing, but Japanese economy gets a major jolt and India might not get its bullet train! I take this missile very seriously, time has come for World to take note of North Korea and address the issue permanently. Around it every country is rich be it Russia or China, or South Korea or Japan or Philippines. Doesn’t North korea deserves development? Will it forever face sanctions and live in poverty? The more you try to keep it deprived the more rebellious it will become!
On the market front
The korean tensions have put most Asian markets in red and we might open around 10,020 levels and that’s a big gap down. As I was suggesting yesterday, any dip below 10,050 or 10,020 is a good opportunity to buy. So extend it to 9980 and buy at this range of 9980-10,040 wherever you get a chance and it will provide you a golden opportunity to make money when it crosses 10,100 again. The action on F&O markets has shifted to 9900 from 10,000 that means base is slowly moving down. The put call ratio is at 1.54 which is reaching over heated levels and now I firmly believe that expiry will happen below 10,200 and above 9900. For today the simple strategy is to buy the dip and wait for 10,100 to exit.