Pre Market Report, June 7, 2018 | Stocks and Commodities

June 7, 2018
Time: 8.35 am

Pre Market Report:

1. US markets were up.
2. Asian markets are also up.
3. SGX Nifty is up by about 50 points.
4. Everywhere it is Green now.
5. Markets were up despite RBI hiking rate.
6. Bank Nifty fell nearly 300 points from intraday high but recovered and closed higher as the comments were dovish though there was rate hike.
7. In short term, markets have bottomed out.
8. Highest open interest among Puts shifted from 10200PE to 1600PE.
9. Even earlier, 10600PE had the second highest open interest among Puts.
10. Means a section of the writers felt 10600 was the support.
11. That decision was a daring on as Nifty was actually trading below 10600.
12. Many midcaps shot up by more than 10% yesterday.
13. Today we can expect some buying in HDFC Bank.
14. Both HDFC Bank and ICICI Bank ADRs were up in US.
15. Markets faced resistance in the region 10700-10720, it looks like today it will be breached decisively.
16. US China trade tension is reducing now.
17. That is the main reason for bullishness all over the world.
18. Housing Finance companies will be in focus due to RBI policy on housing.
19. I have sold 25800PE and 26800CE in weekly options.
20. In addition I bought 26000PE and sold double the quantity of 25500PE.
21. Today this will become delta neutral, I may look to exit with some profit.
22. Still FIIs are in sell mode, both in Cash and F&O.
23. But yesterday they have sold Index Options heavily.
24. That shows that the downside is limited.
25. This is Assuming they have sold Put options. It is logical to assume that they have sold Put options as they are heavily short in Index Futures.
26. Nifty future may trade between 10680 and 10800.
27. Bank Nifty may take support at 26200, upside difficult to say, any short covering can take Bank Nifty even to 26800.