Pre Market Report, August 2, 2017 | Stocks and Commodities

August 2, 2017
Time: 8.20 am

Pre Market Report:

1. Once again US markets are up.
2. It is not only India, entire world markets are in bull grip.
3. As usual short sellers are looking for reasons for major correction. 
4. Today I saw somebody writing, "Hong Kong index trading very close to 28000, last time when it touched 28000, it crashed all the way to 20,000. Now same thing will happen and Nifty will also crash 30%"
5. Markets will surely correct or crash at one point of time but it will make all short sellers bankrupt first before correcting.
6. PCR ratio was more than 2 while 2008 high was 1.55, RSI has been more than 70 for the last two months, so our markets are in over bought condition for many months.
7. All technical analysts are bearish but markets keep moving higher.
8. Just one month before Bank Nifty was at 23000, now it is more than 25000.
9. So as a trader it is better not to take any view.
10. Always use non directional strategies.
11. Who could hvae imagined DIIs buying for more than 3500 crores in two days when markets are at all time high and when everyine is expecting a correction?
12. Even FIIs could not imagine, that is why they keep selling at whatever price they get.
13. Instead if they had waited, they could have got much better price.
14. Today it is all about RBI policy.
15. Expect volatile trade before RBI policy and a big move after 2.30 pm.
16. In addition to RBI policy, PNB results will be a key event to watch.
17. PNB results will be an indication for SBI and Bank of Baroda.
18. SGX Nifty is trading alightly negative, around 10140.
19. In the last half an hour yesterday, Nifty shot up by 50 points and Bank Nifty shot up 150 points.
20. India VIX was up by more than 10% in the last two trading sessions.
21. That is likely to go down after RBI policy.
22. Even Nifty 9500 Put was trading at Rs 15, giving 5% return for Span margin.
23. Bank Nifty options were very active, even 22500 Put was very active, which is about 2700 points lower than the current level.
24. I have sold 23000PE, 23500PE, 24000PE, 25200PE, 25200CE, 26000CE, 26500CE.
25. Hoping to make money due to fall in India VIX.
26. Though people expect 25 basis point cut, my gut feeling is that either there will be 50 basis point cut or along with 25 basis point cut, there will be some other cut like CRR, SLR, etc.
27. PNB, UCO Bank, Bata, Lupin, Wockhard, Reliance Infra, Voltas are some key companies set to declare results today.
28. This bull run is a Historical bull run, India has not seen such a bull run, slow and steady upward move with only a maximum of 250 point correction.
29. That kind of bull run is here to stay as long as money keeps moving to Mutual Funds.
30. Nifty future is likely to trade in a tight range 10120 - 10180 until 2.30 pm and after 2.30 pm, it is anybody's guess.