Pre Market Report, June 2, 2016 | Stocks and Commodities

June 2, 2016
Time: 8.40 am

Pre Market Report:

1. US markets traded in Red for most part of the day but closed flat with positive bias.
2. Chinese related markets like China, Taiwan, Hong Kong, Singapore, all trading in Green.
3. All other Asian markets are trading flat with negative bias.
4. Yesterday Banking stocks dragged the markets down.
5. Nifty was up by 20 points but Bank Nifty was down by 200 points.
6. This may be due to RBI Governor news and Rupee depreciation following that.
7. Now SGX Nifty is trading slightly below 8180 and that is not a good sign.
8. After fantastic rally from 7700 to 8200, for the last three days Nifty future closed between 8180 and 8220.
9. So if Nifty future closes below 8180, then it is a bearish sign for the short term.
10. If it closes above 8220, then it is a bullish sign.
11. So in a way, today's market is a very important one.
12. Nifty future is likely to trade between 8160 and 8240.
13. Instead of 'Buy on dips" now the strategy should be "Sell on Rally".
14. Weekly option expiry in Bank Nifty will add to volatility to already volatile Banking stocks.
15. I have huge positions in Bank Nifty weekly options. I have sold Bank Nifty 17300, 17200, 17100, 17000 Puts and 17500, 17600, 17700, 17800 Calls expiring today.
16. Tata Motors, TVS Motors, Axis Bank will be in focus due to some news related to them.
17. Europe is likely to open slightly positive in the afternoon.
18. So we need to see how markets close today.