Pre Market Report, September 14, 2018 | Stocks and Commodities

September 14, 2018
Time: 8.30 am

Pre Market Report:

1. On Wednesday morning, everything was bearish.
2. In the afternoon the news came that PM is planning an Economic Review meeting.
3. Then immediately markets started moving higher.
4. Short covering took Nifty higher by about 120 points.
5. After the markets closeon Wednesday the news came USChina renegotiation of trade talks.
6. Entire world markets greeted this newsand moved higher.
7. So SGX Nifty is showing almost 80 points gap up today.
8. Nifty fell 300 points in two days and the rise is about 200 points in two days.
9. In terms of trading hours, it is just three hours.
10. All short sellers will be trapped today.
11. I also have some short positions but mostly with hedge.
12. So not a big problem for me.
13. Ifeel that market has bottomed out for the short term.
14. I am planning to sell 11300PE and 11200PE.
15. Aso planning 11700 or 11800 put calendar.
16. All those who paid high prices for buying Put options are losing heavily.
17. I was also worried the way in which markets were falling, I bought 11200PE but sold 2X11000PE. 
18. So I do not lose anything if markets move higher as premium paid is same as premium received.
19. With this gap up and short covering on Wednesday, I feel that PM's economic review and all other positives have already been factored in.
20. Next week, at best markets may consolidate, not expecting any runaway rally.
21. Any intraday dip, I am planning Put calendar or naked Put selling.
22. Also planning to buy 11600CE and sell 2X11800CE.
23. Expecting markets to consolidate and may even come down slightly after morning panic reaction by short sellers.
24. Nifty future will face stiff resistance at 11520.
25. Support may come around yesterday's high, about 11420.