Pre Market Report, September 12, 2018 | Stocks and Commodities

September 12, 2018
Time: 8.30 am

Pre Market Report:

1. US markets were higher due to crude prices and apple.
2. But Asian markets are mostly down.
3. SGX Nifty is almost flat.
4. Yesterday as well as day before yesterday my prediction went wrong badly.
5. Rupee depreciation is creating sort of panic in markets.
6. Nifty has fallen 300 points in two days.
7. Bull market corrections are very sharp and swift.
8. It took two months two gain 1000 point in Nifty but took only two days to lose one third of it.
9. There is all round selling in Cash, index futures, stock futures.
10. Everything looks bearish.
11. Tomorrow is a local holiday.
12. Traders may not like to carry positions home due to local holiday tomorrow as we can not react to global cues tomorrow.
13. Hence though markets may be bearish, there may be some short covering towards the end of the day.
14. So one has to be cautious in selling or buying options for intraday.
15. The risk reward may not be in your favour for even shorting at this level.
16. Yesterday around 2.45, I shorted Nifty at 11390 and in the next 45 minutes fell another 60 points.
17. I shorted for hedging purpose, not for intraday.
18. So time to be cautious, I am planning to sell Call options if markets show any intraday bounce.
19. On the put side, one may sell put option with protection.
20. Iron Condore or Ratio Spread will be a good idea.
21. One can buy 11200PE and sell 2.5X or 3X 11000PE.
22. Nifty is likely to find major support at 11000, if Nifty expire between 11200 and 11000, there will be very good profit.
23. Nifty should take support at 11280.
24. No point in talking about resistance in this bearish market.