Pre Market Report, June 1, 2018 | Stocks and Commodities

June 1, 2018
Time: 8.30 am

Pre Market Report:

1. US markets fell due to steel tariff hike.
2. But Asian markets are not following US.
3. SGX Nifty is up by about 30 points.
4. India GDP came at 7.7% vs general expectation of 7.4%.
5. Now India is the fastest growing country in world.
6. It is altogether a different issue, we do not feel the growth in our life.
7. Yesterday Bank Nifty shot up by about 700 points from intraday low.
8. HDFC Bank ADR shot up by 9% the previous day in US.
9. Auto stocks will be in focus ahead of monthly auto sales data.
10. Nifty 10200PE has the highest open interest among Puts and 11000CE has the highest open interest among Calls.
11. So the range is wide for June series, 10200-11000.
12. But I feel that June may be a trending series.
13. We have been in consolidation mode since February.
14. I remember, in the first week of February Nifty was around 10700.
15. After 4 months, it is still around the same place.
16. Good GDP data, Good progress of Monsoon, Crude prices, stability is Rupee etc may come into play.
17. Now the results season is over, stock specific volatility may not be there.
18. The pain continues in midcap and small cap stocks.
19. That is not likely to change in June.
20. May series was a volatile series due to Karnataka election.
21. Moreover, it was a 5 week series.
22. June is a four week series.
23. We can start selling 10200PE whenever there is intraday fall in Nifty.
24. Will not like to sell Call option initially, if Nifty moves above 10800, then may consider selling 11100 or 11200CE.
25. Today Nifty future mya trade between 10680 and 10780.