Pre Market Report, September 11, 2018 | Stocks and Commodities

September 11, 2018
Time: 8.45 am

Pre Market Report:

1. US markets ended mixed after a volatile session.
2. Initially markets in US rose due to Tax cut hopes.
3. But later, fell due to US China trade war fears.
4. Most Asian markets are down.
5. Some Asian markets started in Green, now turning to red.
6. SGX Nifty broke 10450 but now trading around 10460-10470.
7. There is a all round selling due to Rupee depreciation.
8. Yesterday's fall of 150 points in Nifty was one of the worst this year.
9. Markets may try to consolidate at the lower levels.
10. Trump has threatened to slap the tariff against Chinese products but has not done anything so far.
11. So the uncertainty is continuing.
12. Markets do not like uncertainties.
13. Still both Nifty future and Bank Nifty future are trading at huge premiums.
14. There are only 11 more trading sessions, so the premiums may collapse at point.
15. That premium collapse itself will bring down Bank Nifty future by about 200 points.
16. So premiums on Call options are higher and Put options lower.
17. That does not mean that the underlying is bullish.
18. Stay cautious, any intraday bounce should be used to sell Call options.
19. Both DIIs and FIIs have sold hevaily in Cash market.
20. FIIs have sold heavily in both Index futures and Stock futures.
21. They have bought Put options heavily to protect the downside.
22. But sometimes, markets shoot up due to short covering in this kind of market set up.
23. But then we need some trigger for that, even a slight positive news will become a trigger.
24. Most European and US futures are trading slightly positive.
25. We may not fall much today but there will be some initial jitters.
26. Nifty future may trade between 11440 and 11540.