Pre MaArket Report, August 20, 2018 | Stocks and Commodities

August 20, 2018
Time: 8.15 am

Pre Market Report:

1. US markets closed higher on Friday.
2. Asian markets are generally higher.
3. SGX Nifty hit a high of 11533 and now trading around 11520.
4. Now the market is opening above all time high, many technical people will go long.
5. I expected this that is why I have given the strategy 11700PE and 11700CE sell this month and 11700PE buy in next month for protection.
6. L&T buyback and Infosys top management people exiting are the hot news over the weekend.
7. ITC and Tata Motors, last one year under performers, are showing some signs of activity.
8. I am planning to sell ITC 300PE and Tata Motors 240PE.
9. Global cues are good without corresponding rise in Crude.
10. That is very good for India.
11. We have 8 more trading sessions, so option premiums may start falling.
12. I sold 11200PE on Friday.
13. In addition, I sold 11600 straddle with Rs 200 as combined premium. So I will be making some profit as long as Nifty trades between 11400 and 11800.
14. I also sold 11700PE and 11700CE in August and bought 11700PE in September for protection.
15. Sold Bank Nifty weekly options of 27400, 27500, 27600, 27700, 27800, 27900 and 28000PE.
16. Aggressive positions in Bank Nifty is due to the bullishness as well as one day holiday before the weekly expiry.
17. After today's gap up, I will be able to keep stop loss for all my positions.
18. There was a considerable unwinding of 11500CE which shows that the doors are open for higher side movement.
19. The next resistance will be at 11600.
20. However if there is any good news regarding US China trade war, Nifty can scale to 11700.
21. So if there is any intraday dip, it is a buying opportunity.
22. Nifty future may trade between 11480 and 11580.
23. Bank Nifty all time high is 28363, that is a key level to watch.
24. I will look to sell Bank Nifty 27200PE and 27000PE if there is any intraday dip in Bank Nifty.
25. Many traders committed today's profit for Kerala Flood Relief, let us see how markets favor them.