Zebu blog

Tag: investor sentiment

  • How to Read Pre-Market Trends (Without Becoming Paranoid)

    Every morning, the Indian market opens with a mix of data and emotion. It’s not just numbers—it’s expectations shaped by what happened in New York, Singapore, or even in Brent crude futures while we were asleep. For many investors, the time between 8:30 and 9:15 is the noisiest part of the day.


    Especially on weeks like this one, where Nifty hovers near record highs, global cues feel shaky, and a couple of heavyweight stocks are due to report earnings. We’ve seen this across Zebu users: a rise in logins before 9 AM, mostly to check SGX Nifty, U.S. closes, and WhatsApp alerts. And while the instinct to “stay ahead” is understandable, it can often lead to stress that’s… unnecessary.

    Here’s a better way to look at pre-market signals. Not as warnings, but as reference points—calmly interpreted, with intention.

    What’s Actually Moving Before 9:15 This Week?

    Let’s look at the headlines that shaped Tuesday’s close:

    • Sensex and Nifty were steady above 77,000 and 23,400 respectively
    • Banking and power stocks gained, while FMCG paused
    • Crude oil prices rose slightly overnight, renewing concern over inflation-sensitive sectors
    • SGX Nifty pointed to a flat-to-negative open amid global rate jitters

    So what does this mean for your screen on Wednesday morning?

    Mostly: not much… unless you overreact to it.

    SGX Nifty: Not a Mirror, Just a Mood

    SGX Nifty is often the first thing Indian investors check. It gives a sense of where Nifty might open. But it’s not predictive—it’s just reflective of overnight sentiment, traded offshore. Today, if SGX Nifty drops 60 points, and Nifty opens down 30 and recovers quickly, that’s normal. Indian markets often adjust based on local flows and institutional action post-9:30. So glance at SGX, sure. But don’t trade because of it.

    US Markets vs. Indian Fundamentals

    Dow Jones down 0.5%, Nasdaq slips 80 points. That’s a headline. But is it a reason to exit your Hindustan Unilever position?

    Not always. Right now, Indian domestic flows are holding up well. Mutual fund SIPs, retail delivery volume, and resilient demand for PSU stocks have created a buffer. Unless the global drop is tied directly to oil, rates, or currency moves, Indian stocks may react mildly—or not at all.


    Zebu users checking U.S. closings on their dashboard should pair that with FII/DII flow summaries. Context > drama.

    Company Earnings: The One Pre-Market Cue That Matters

    This week, a few large-cap stocks are announcing results. If you hold or plan to buy any of them, pre-market action might be sharp. If the earnings beat estimates, the stock could gap up at open. But will it hold that move? Only if volumes confirm. If results disappoint, a gap down is common. But that doesn’t mean a sell-off is coming. Look at support zones and delivery volumes. Use the chart. Don’t use emotion.

    How Pre-Market Tools Help—If You Don’t Let Them Rush You

    Zebu’s platform shows:

    • Gap-up/gap-down stocks before 9:15
    • Volume spikes in early order placement
    • Sector buzz based on early interest

    But these aren’t meant to trigger immediate trades. They’re there to give you a sense of what the day might look like—not what it has to be.

    Set alerts, not alarms.

    The Best Traders and Investors Don’t Rush at Open

    Some of the most consistent users we observe log in early, yes. But they don’t place orders at 9:01. They:

    Observe index futures
    Check if their stocks are reacting to news
    Watch the first candle post-open
    Wait 15 minutes before acting

    This routine avoids knee-jerk reactions. It turns pre-market into prep—not panic.

    What to Actually Do This Morning

    Here’s a checklist for Wednesday:

    1. Check SGX Nifty — Directional cue, not a guarantee
    2. Read global close — Only act if the reasons affect your holding
    3. Look for India-specific data — FII flow, RBI commentary, earnings results
    4. Check your stock’s pre-market buzz — Gap ups, upgrades, volume
    5. Ask yourself one thing — Is this part of your plan?

    If the answer is no, don’t act. That simple filter could make your week easier.

    Final Thought: Pre-Market Is a Lens, Not a Lever

    Not every gap needs to be filled. Not every red candle needs to be caught. Not every pre-market dip means a crash is coming. Indian markets have matured. So have Indian investors. At Zebu, we’re designing tools that help you see more, not do more. Because in the 45 minutes before the bell rings, your best move is often just to observe.

    Let the market come to you. Most of the time, it does.

    Disclaimer

    This article is for informational purposes only. Zebu does not provide investment advice or guaranteed outcomes. Investors are encouraged to consult certified professionals before making trading or investment decisions based on market trends or data.

    FAQs

    1. How to understand market trends for beginners?

      Start by observing pre market trends and key stock movements; even beginners can spot early signals of momentum before regular trading begins.

    2. What are pre-market trends in the stock market?

      Pre-market trends are price movements and trading activity that occur before the official market opens, giving clues about possible opening behavior.

    3. How can I read pre-market data effectively?

      Focus on volume, price changes, and news catalysts; this forms the basis of a solid pre market trading strategy.

    4. What factors influence pre-market stock prices?

      Earnings announcements, global cues, economic data, and major news events drive pre-market stock prices.

    5. Can pre-market trends predict regular market movements?

      They can offer hints, but pre-market trends aren’t always definitive-use them as one tool alongside broader analysis.

  • Why The Market Always Reacts To The Fed’s Interest Rate Hikes – Part 2

    Here are some more ways in which rate hikes by the Feds and the RBI can affect your money.

    Mortgages Become Costlier

    If the Fed raises interest rates again, people who need to borrow money to buy a house or use their home’s equity to pay for something else will likely have to pay more in the coming months.

    Some economists said at the beginning of this year that rates would reach their highest point in the summer. Midway through June, the 30-year fixed mortgage reached 5.81%, and economists predicted that rates would be in the low 5% by the end of the year.

    But as the economy got worse and the Fed kept raising rates quickly, mortgage rates hit a new 20-year high of 7.08% in the middle of November, which was higher than most predictions for the year.

    Since then, home loan rates have gone down a bit. According to Freddie Mac, the average rate for the week ending December 8 was 6.33%.

    The bond market, which often responds to what the Fed does, has a direct effect on mortgage rates.

    The Fed’s rate hikes in 2022 were one of the things that drove up mortgage rates earlier in 2022. The recent drop in rates has been helped by investors’ strong demand for mortgage bonds. That’s because the economy seems more stable and Fed rate hikes, especially when they’re small, no longer come as a surprise.

    But the Fed funds rate is directly tied to shorter-term home loans with floating rates, like adjustable-rate mortgages (ARMs) and home equity lines of credit (HELOCs). This means that when that rate goes up, the rates for ARMs and HELOCs go up soon after.

    Even though mortgage rates are still high compared to 2021, when they were at their lowest, not everyone thinks that this is a bad thing. Some people in the real estate business think that raising rates is one way to cool down a housing market that is too hot. After years of low borrowing costs, some people think it’s time to get back to normal.

    Housing experts say that people who want to buy now should think about locking in the best interest rate, since rates can go up even by the hour. Rate locks usually last at least 30 days, but some lenders offer longer locks, usually for a fee.

    It is hard to know for sure if you have locked in the lowest rate possible, but you can always refinance later if rates go down.

    3. Interest rates on savings accounts are going up, but slowly.

    A higher federal funds rate is good for savers, whose savings account rates have been slowly going up.

    There is no direct link between federal funds and deposit rates, but banks are steadily raising the annual percentage yields (APYs) they pay on deposit accounts like savings accounts, money market accounts, and certificates of deposit (CDs).

    Rates go up to attract deposits, but banks have a lot of cash on hand right now, so they can take their time raising yields.

    APYs on deposits will go up faster or slower depending on where you bank. Online banks, smaller banks, and credit unions usually have better yields than big banks, and they’ve usually raised rates faster in the past few months because they’re competing more for deposits.

    If you want a better return on your money, you might do best to put it in an online bank or credit union. Since January, the average rate on a savings account has gone up from 0.06% to 0.24%, but the best high-yield savings accounts pay up to 5% APY on some deposits.

    Where you keep your cash is important, especially when inflation is rising.

  • Why The Market Always Reacts To The Fed’s Interest Rate Hikes – Part 1

    The Federal Open Market Committee (FOMC) announced on December 14 that the federal funds rate would go up again, this time by 50 basis points, to a range of 4.25% to 4.5%.

    This move comes after the central bank raised interest rates by 75 basis points in June, July, September, and November, and by smaller amounts in March and May. All of these moves were part of the central bank’s plan to combat persistently high inflation.

    Even though the committee noticed that the job market was strong, it decided to raise rates because of the continued gap between supply and demand and the ongoing conflict in Ukraine.

    The FOMC has maintained that the Committee expects that ongoing increases in the target range will be appropriate to achieve a monetary policy stance that is sufficiently restrictive to return inflation to 2% over time.

    Inflation can take a long time to return to normal, which can be detrimental for consumers who are already struggling. It also takes a few months for changes in Fed policy to make their way through the economy. But it’s important to remember that some of the policies’ financial effects, like higher interest rates on borrowed money, can be felt more quickly.

    How the Fed’s rate hike can affect US citizens in 3 ways. In a similar manner, when the RBI increases the interest rate in India, your money will be affected.

    Interest on credit cards is becoming more expensive
    When the Fed raises interest rates, it costs you more to carry a balance on your credit card. This is because the interest rates on consumer debt, like a credit card balance, tend to move in lockstep with the federal funds rate.
    The interest rates that commercial banks charge each other for short-term loans depend on this key interest rate. When the fed funds rate goes up, it becomes more expensive to borrow money, which can make banks and other financial institutions less likely to borrow money.

    The banks pass on the higher costs of borrowing by raising the interest rates they charge on loans to consumers. Most credit card companies base their annual percentage rate (APR) on the prime rate, which is the rate banks charge the customers with the least risk for loans, plus a percentage to cover costs and make a profit.

    But most APRs are variable, which means that when you get a new credit card, the interest rate you agree to pay can change based on the prime rate. So, if your credit card’s annual percentage rate (APR) is 18.15 percent and the Fed raises the federal funds rate by 75 basis points, your issuer is likely to raise your APR to 18.90 percent.

    The cost of carrying a credit card balance goes up as the interest rate on that balance goes up. Consider paying off as much of your debt as possible or using a balance transfer card with 0% APR to reduce how much extra money you’ll have to pay on your debt.

  • What Are The Indices In The Stock Market?

    An investor can use a stock market index to measure the performance of a market, like the Bombay Stock Exchange or the National Stock Exchange, or a sector, like the energy, infrastructure, or real estate markets. In India, SENSEX and NIFTY are the two most important stock market indices that are used to measure the market. Indian investors can keep an eye on how the index value changes over time and use it as a benchmark to measure how well their own portfolios are doing.

    Investors now talk about the stock market as having indices for different parts of the market that don’t always move together. Because if they did, there would be no need for different stock market indices. By learning how stock market indexes are made and how they change, you can make sense of the daily changes on the Indian market.

    SENSEX S&P BSE (also called BSE 30 or SENSEX)

    SENSEX was the first stock market index for equities. It was created in 1986. It is made up of shares from 30 companies that are listed on the BSE and are well-known and financially stable. These companies are a good example of the major industrial sectors of the Indian economy.

    How to measure the SENSEX

    SENSEX has switched to the market capitalization weighted method, which gives weights to companies based on how big they are. The weight goes up as the size goes up.

    Now, it is thought that the total market share was 100 points when the index was made. This shows the change in terms of % in a way that makes sense. So, if the market capitalization goes up by 10%, the index goes up by 10% as well, from 9 to 10.

    Let’s imagine that there is only one stock on the market. Let’s say that the stock is now trading at 200 and that its basic value is 100. If the price of the stock is 260 tomorrow, it has gone up by 30%. So, the index will go from 100 to 130, a 30 point jump. If the stock price goes down from 260 to 208, that’s a 20% drop. To reflect the drop, the SENSEX will be changed from 130 to 104.

    CNX NIFTY S&P (also called NIFTY 50 or NIFTY)

    The National Stock Exchange has 50 shares of NIFTY, which was started in 1996. It gives investors access to the Indian market through a single portfolio and includes 24 different parts of the Indian economy.

    NIFTY calculation

    The same formula that the Bombay Stock Exchange uses to figure out the SENSEX is also used to figure out the NIFTY. But there are three major differences:

    NIFTY is made up of 50 stocks that are actively traded on the NSE (SENSEX is calculated on 30)


    On both the SENSEX and the NIFTY, there is a separate index for each sector. This makes it easier for investors to keep track of changes in the market every day.

    Please think about this helpful advice: if you want to play on the stock market, you need to learn how to keep an eye on the scorecard, which is made up of two stock market indices. Zebu’s platforms give you real-time price moves about all of Nifty and Sensex’s prices. Open a trading account with us to find out more.

  • Why Is Muhurat Trading Special?

    Muhurat trading is an old ritual that has been done by traders for hundreds of years, even before the existence of the share market. This is the lucky hour of trading that happens on Diwali, and the stock exchange decides when it happens every year. People have thought for a long time that trading or investing during the Muhurat will bring money and success for the whole year. During this session, which is mostly held in the evening, most traders buy stocks.

    The word “Muhurat” means a good time to do business. According to the Hindu calendar, this is when the planets are lined up in a certain way, making it a good time to do business. Most traders do business during this time of year for sentimental, religious, and customary reasons.

    How did it all begin?

    During the Muhurat trading session on Diwali, brokers used to set up new settlement accounts for all of their clients. Indian stock exchanges are the only ones that can do Diwali Muhurat Trading. On Diwali, a ceremony called Laxmi Pooja is held on the stock market, and investors buy shares of reputable companies to keep for future profits. Muhurat trading tells us two things that are clear and loud: pay attention to quality and make investments with long-term goals.

    Information you need to know about Muhurat Trading

    1. The best day to put money away

    People believe that the day of Diwali and, especially, the season of Muhurat trade are especially good times to invest money. This is one reason why a lot of traders start the day with special prayers and buy shares in companies they want to invest in for the long term. To make a smart investment, you also need to know what happened on the stock market the day before.

    2. Good for first-time investors

    The best time for a new trader to make their first deal is called the “muhurat deal.” One can learn about the market while exploring with a small amount of money. Once they understand it well enough, traders can choose the best stocks to invest in.

    3. Helps day traders make money

    Many traders believe that muhurat trading is a good way to make a lot of money because the Sensex will be going up, for sentimental reasons. Because of this, many people buy and sell stocks on the same day. But people should be careful because the Sensex has lost money on some Muhurat trading days. There have also been times when the Sensex went down the day after an event.

    What do you need to do?

    Before making an investment, a person who wants to make money should look for stocks or equities with a high return and a strong cash flow. Adding gold to your portfolio of investments needs careful thought if you want to make money from it. Today, you can easily buy Gold in the form of ETF or bonds.

    Muhurat trading If you’re one of the many traders who hasn’t yet found the right time to buy or sell on the stock market, this is the year to do it. This is a very exciting time for both traders and investors. But it’s important to remember to trade wisely and not let your desire to make more money take over.

    So get ready by doing research on the stocks you want to trade and the money you want to put in during the Muhurat Trading this Diwali. Open your Zebu trading account and get started now.

  • Everything You Need To Know About Muhurat Trading – Part 2

    Who Can Benefit from Muhurat Trading?

    SInce there are so many trades during the Muhurat trading session, it is a good time to buy or sell stocks. Also, the market is usually good because people are optimistic about the economy and stock markets during the holidays because they are thinking about getting rich and being happy. So, the Muhurat trading session is a great time for traders and investors, both experienced and new, to make money.

    If you’ve never bought stocks before, Diwali is a great time to start. Look for good companies and buy a few stocks in line with your investing plan and with a long-term view. If you want to get into stock trading, you might want to watch the markets during Muhurat Trading to get a feel for how things work. You should probably do some paper trading as well. Since you can only trade for an hour, markets are known for being very volatile. Because of this, new traders are told to be careful.

    As a sign of respect for the good luck of the day, most investors and traders will buy or sell stocks during this session. This means that experienced day traders can also make money during this session.

    It may be more important to do something than to make money from it. So, day traders with experience can make money by taking positions after giving them enough thought. This year, the economy has been hurt by the effects of the pandemic on both businesses and people’s lives. Many experts think that the Muhurat trading session in 2022 will be a good one, but you should keep your excitement in your heart and use your mind when choosing trades.

    Things to think about before getting into Muhurat Trading

    1. Most traders and investors think that now is a good time to put money into stocks.
    2. At the end of the trading session, all open positions will have to meet certain settlement requirements.
    3. On October 24, 2022, there will be a muhurat trading session. On October 24, the markets will be closed for Lakshmi Pooja.
    4. Traders need to keep a close eye on the resistance and support levels. During Muhurat trading sessions, it has been said that the markets might move in a random way and not go anywhere. So, as a day trader, you will be able to make better trading decisions if you keep the resistance and support levels at the centre of your trading decisions.
    5. Before investing in a company’s shares for the long term, investors should make sure they still believe in the company’s core values. Most of the time, trading during Muhurat is very exciting, and rumours can spread quickly. Keep things simple and invest based on your investing strategy and how much risk you can handle.
    6. Since the trading window is only open for an hour, if you want to make money from the volatility, you should be careful to choose stocks that have a lot of trades.
    7. Investing during this time frame does not guarantee a return. Even if the stock has a good Diwali, its performance in the future will depend on how its fundamentals and macroeconomic factors change.

    Make use of the positive sentiments around Diwali to invest in your favourite stocks. To get started, open your Zebu trading account today.

  • Everything You Need To Know About Muhurat Trading – Part 1

    The Hindu calendar says that the Festival of Lights, or Diwali, is a lucky time. It shows that good wins over bad, that knowledge wins over ignorance, and that light wins over darkness.

    Diwali has a lot of different traditions, rituals, and beliefs that go along with it, just like any other religious holiday. One of these is Muhurat trade. Today, we’re going to talk about this tradition and tell you everything you need to know about it.

    What is Muhurat Trading?

    Before we answer the question, “What is Muhurat Trading?”, let’s take a look at the word “Muhurat.” The word “Muhurat” means a fortunate time. Hindu traditions say that muhurat is a time when the planets are in a good position to make sure success.

    A lot of traders in India follow a tradition called “Muhurat Trading.” On Diwali, this one-hour window is thought to be a good time to buy stocks. The time for Muhurat trading is set by the stock market every year.

    The belief is that people who trade at this time are said to have a higher chance of being rich and successful for the rest of the year. As a gift to Goddess Lakshmi, most people choose to buy stocks around this time, which is often the evening of Diwali. This is only in the Indian stock market.

    Muhurat Trading’s History

    When did Muhurat Trading get its start?

    Many stockbrokers started their new year on Diwali. So, during Diwali, they would open new settlement accounts for their clients during a lucky time called the Muhurat. On Diwali, brokers would also worship their ledgers by doing Chopda Pooja.

    Many people believe that this time is lucky, so muhurat trade has become more of a symbol than a traditional practise. Most Hindu investors do Lakshmi Pujan, which is a prayer to Goddess Lakshmi, and then buy shares in strong businesses that have the potential to make money in the long run.

    How do things work at Muhurat Trading?

    The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) both let people trade on Diwali for a short time. Most of the time, the session has the following parts:

    1. Block Deal Session: This is when two people agree to buy or sell a security at a set price and let the stock exchange know about it.
    2. During the pre-open session, the stock exchange decides on the price that is just right (usually around eight minutes).
    3. During the normal market session, which lasts an hour, most trading takes place.
    4. Auction Session: this is when securities that are hard to sell are traded. A security is said to be illiquid if it doesn’t meet the requirements of the exchange.
    5. During the closing session, people who trade or invest can place a market order at the closing price.

    To open your account with Zebu to invest during the auspicious day of Muhurat trading, get in touch with us now.

    To know more about Muhurat Trading, read out next blog for part 2 of this blog post.