Pre Market Report, July 27, 2018 | Stocks and Commodities

July 27, 2018
Time: 8.45 am

Pre Market Report:

1. US markets were mixed with Nasdaq down due to Facebook and Dow up.
2. SGX Nifty is trading around 11250.
3. I was bullish only for one reason, the reason is that everyone was bearish.
4. Remember "Consensus is Dangerous" in stock market.
5. Last month I did Nifty 11200 Put calendar when Nifty was around 10800, made good profit.
6. Remember in 2008 we were at 6300 and China was at 6000. Then when markets collapsed we went to 2500 and China went to 2000. Now we are above 11000, China is still around 3000.
7. This means we are almost double of 2008 peak while China is half of 2008 peak.
8. Any more complaints about our market?
9. In the mean time, there was a fantastic rally in mid cap and small cap stocks.
10. Now it is the time for large cap stocks.
11. The range for August series is 10500 to 11500 going by the Options data.
12. Nifty 10500PE has the highest open interest among Puts and 11500CE among Calls.
13. Today ICICI Bank will declare results after the market hours.
14. August is a 5 week series, (Happy as we will get to trade 5 expiries in Bank Nifty)
15. Also lot of results will be declared.
16. So markets can be volatile.
17. Yet I believe that Nifty will trade between 10500 and 11500.
18. Yesterday expiry trade did not go well as Maruti and Yes Bank fell and REC shot up, reducing my potential profit.
19. I am planning to sell 10500PE and 11500CE in Nifty.
20. In Bank Nifty 26000PE and 28500CE.
21. Today it may be a breakout trade, will be difficult to predict the range.
22. Nifty future may trade between 11180 and 11300.