Pre Market Report, March 26, 2018 | Stocks and Commodities

March 26, 2018
Time: 8.45 am

Pre Market Report:

1. US markets fell drastically in the last one hour of trade on Friday night.
2. But US futures were higher in Asia today morning.
3. Most Asian markets have recovered from the lows.
4. In fact, few markets are trading in Green.
5. SGX Nifty hit a low of 9912 on Friday.
6. But now it is trading between 9980 and 10000.
7. If everything goes well for the next 45 minutes, we may open flat.
8. If markets open flat and do not fall for few hours, then there could be some short covering.
9. But that may be for 40 to 50 points in Nifty.
10. But the probability for this is very low.
11. There may be one more round of selling between 11 am and 12 Noon and Nifty may test yesterday's low.
12. Only then there may be some recovery.
13. On Friday FIIs were buyers in Cash market for more than Rs 1500 crores which is a big positive.
14. But DIIs were net sellers for about 900 crores which is big negative.
15. FIIs have shorted heavily in F&O.
16. That may be due to hedging for Nifty 10000PE which had the highest open interest.
17. I also shorted Nifty at 10000 and sold 10000PE at Rs 75 on Friday.
18. My loss will begin only when Nifty crosses 10075.
19. In that case I might sell additional Put options in April or May.
20. Since there are only 3 more trading sessions, due to time value, I may come out with some profit even if markets move higher.
21. If markets move lower then there will be no problem.
22. Crude prices crossed US$70.
23. So Auto stocks may be in focus.
24. While writing this blog, Asian markets are falling. Hong Seng fell about 200 points.
25. So markets will be highly volatile.
26. F&O expiry will add to the volatility.
27. Nifty future may trade between 9950 and 10040.