Pre Market Report, May 31, 2018 | Stocks and Commodities

May 31, 2018
Time: 8.45 am

Pre Market Report:

1. US markets recovered yesterday and Dow up more than 300 points.
2. Asian markets are all doing well.
3. SGX Nifty is up by about 30 points.
4. MSCI threatened to reduce India weightage.
5. Anyway  FIIs keep selling and that has not been an issue for the last one year.
6. Crude started moving higher again.
7. As I stated last week, Nifty has been trading between 10500 and 10800.
8. Highest open interest among Puts and Calls are also there.
9. But within this range, markets are highly volatile.
10. In fact in the last 5 trading sessions, Nifty has moved about 100 points everyday.
11. Today expiry will make markets even more volatile.
12. HDFC Bank will be in focus, on one side ADR is up by 8%, on the other side it turns ex-dividend today.
13. Futures in HDFC Bank was trading nerly 20 point discount to spot, though the dividend is only Rs 13.
14. So HDFC Bank and ICICI Bank will make Bank Nifty more volatile.
15. Large positions in F&O may not be rolled over as the change in margin requirements kicks in from tomorrow.
16. Last expiry was around 10620, markets have gone up and down, finally it somewhere there only.
17. Only Option sellers who sold and hold made money.
18. Things may turn around in June due to good monsoon.
19. Markets may not fall much today.
20. Nifty future may take support at 10580.
21. Resistance will be at 10700.