Pre Market Report, June 30, 2016 | Stocks and Commodities

June 30, 2016
Time: 8.35 am

Pre Market Report:

1. Yesterday once again US markets shot up.
2. So Asian markets are mostly higher.
3. SGX Nifty is trading around 8260.
4. I have been writing that we have a lot of good things locally like monsoon, GST, 7th Pay Commission, corporate results, reforms etc.
5. We have been struggling just because of Brexit.
6. Now the world markets are recovering, we have been doing extremely well.
7. Day before yesterday, FIIs have shorted heavily and I said that is good as markets can move higher sharply due to short covering by these people.
8. Yesterday India VIX crashed almost 9% following 5% crash the day before.
9. Today also the trend is likely to continue.
10. As I said earlier, all option buyers would have lost heavily.
11. I also bought Nifty 8000 Put option but financed it by selling other options.
12. Along the way I cut the positions and sold the same strike Put option.
13. So effectively I made minor profit but safeguarded my folio.
14. Nifty is expected to trade in a tight range until afternoon.
15. We can expect some sharp move close to the expiry.
16. In May, Nifty traded between 7700 and 8000 with huge volatility and broke out on the expiry day and closed at 8070.
17. This month Nifty has been trading between 8000 and 8300 with huge volatility (except on Brexit day when Nifty hit 7927 intraday but closed above 8000) and today it is closer to 8300.
18. Whether the same thing will happen this time? Will Nifty break 8300 and close above 8300?
19. That is a billion dollar question.
20. I have lot of Nifty 8300 Call options, I will put stop loss anyway.
21. Nifty is expected to expire between 8250 and 8320.