Pre Market Report, April 4, 2018 | Stocks and Commodities

April 4, 2018
Time: 8.40 am

Pre Market Report:

1. US markets were up yesterday night.
2. But US announced the list of Chinese goods which will attract higher tariff after the markets close.
3. So Asian markets are not that positive.
4. SGX Nifty is also trading almost flat.
5. FIIs have created short positions yesterday during the rally.
6. FIIs long positions is at a low.
7. If there is any good news, then short covering rally may set in.
8. Today evening, US Private Sector jobs data, tomorrow RBI policy, Friday US jobs data are the key events to watch.
9. FIIs continue to sell in Cash market and DIIs continue to buy.
10. Our markets have been out performing the world markets.
11. In fact we under performed the world markets in February and March, so we may out perform in April.
12. Corporate results related action start picking up.
13. IndusInd Bank hit all time high when markets are almost 10% lower and Bank Nifty is the worst performer.
14. HDFC bank, Indusind Bank, Kotak Bank are the star performers in this downfall.
15. Yesterday I did short straddle in Bank Nifty at 24500.
16. Combined premium was Rs 920, so the loss will begin below 23580 and 25420.
17. Expecting IV to fall after RBI policy tomorrow.
18. Nobody is expecting any action from RBI.
19. So it may become a non event.
20. If Nifty moves 40 to 50 points higher, I am planning to do a straddle at 10300.
21. If Nifty future falls to 10220 level, then we can consider going long also.
22. Nifty future is likely to trade between 10220 and 10320.