Pre Market Report, May 8, 2018 | Stocks and Commodities

May 8, 2018
Time: 8.35 am

Pre Market Report:

1. US markets closed higher.
2. But closed off the intraday highs.
3. That was mainly due to the Trump's announcement regarding Iran.
4. But Asia does not bother about Iran.
5. Most of the Asian markets are higher.
6. Even SGX Nifty is up by about 30 points on top of 100 point rally yesterday.
7. But Nifty is trading closer to resistance zone.
8. Yesterday's rally was mainly due to a opinion poll that predicted BJP as the single largest party securing 105 to 108 seats in Karnataka.
9. Today's gap up may be mainly due to positivity of ICICI Bank.
10. ICICI Bank ADR is up by 4.5%, it was up already by 3% yesterday here, so another 1.5 to 2% upmove is there.
11. That may take Bank Nifty to 26000 easily.
12. Nifty 10780 and Bank Nifty 26000 are good resistance.
13. For the next two days markets may consolidate and then on Monday markets will react to Exit poll results.
14. I have mentioned earlier, irrespective of Karnataka election results, markets will move higher if Global cues and Monsoon forecast are good.
15. Between now and expiry, there are lot of news flow.
16. (a) US decision on Iran tonight. (b) Exit poll results on Saturday evening, (c) Actual results on May 15, (d) Second Monsoon forecast on May 15, (e) US announcement on China traiff after May 22.
17. In addition, PSU Banks results will also be coming out in the last two weeks of May.
18. Last time, SBI came with very bad results.
19. Option writers still believe 10500 and 11000 is the range.
20. But, I believe either one of them will be broken.
21. In fact there is a possibility of both breaking due to volatility.
22. Remember, Nifty fell 400 points and then shot up 400 points on Gujarat vote counting day.
23. I am looking to exit all positions by tomorrow or day after tomorrow.
24. Then may do some strategy to capture the volatility.
25. Then I may reenter after Karnataka state election results.
26. Yesterday I sold Bank Nifty 25500, 25200, 25000PE in weekly options.
27. Nifty future may trade between 10700 and 10800.