Pre Market Report, May 18, 2018 | Stocks and Commodities

May 18, 2018
Time: 8.55 am

Pre Market Report:

1. US markets closed lower as Cisco came with not so good results and guidance.
2. Asian markets are mixed, some positive and some negative.
3. SGX Nifty is trading around 10670.
4. Yesterday in the last one hour, there was a basket selling.
5. Only HDFC Bank saved the market from crashing.
6. Political Uncertainty, US-China Trade uncertainty, Crude at US$80, US bond yield above 3.10%, etc are not good for the markets.
7. Technically also markets are looking very weak.
8. FIIs have bought Options for more than Rs 2500 Crores for three consecutive days.
9. That shows the fear among them about market fall.
10. But still I feel Nifty will be trading between 10600 and 10800.
11. Nifty has been trading in this range in all the days of May series, except for two days due to Karnataka election.
12. The real selling will happen if Nifty breaks 10600-10620 range.
13. The pain is in the midcap and small cap segments.
14. Many good quality stocks are hitting 52 week lows like Tata Motors, REC, PFC, Lupin, etc.
15. I have sold Call options aggressively.
16. If there is any bounce, I will continue to sell Call options and will close my Put options.
17. The right strategy now is Call ratio spread.
18. Now the market has come to "Sell on Rise" mode from "Buy on dip" mode.
19. Time to be cautious in the long side, we need to see ehether there is a follow through selling of yesterday's basket selling.
20. Nifty future may trade between 10660 and 10760.