Pre Market report, September 18, 2018 | Stocks and Commodities

September 18, 2018
Time: 8.45 am

Pre Market report:

1. US markets closed lower.
2. After the markets close, Trump announced US$200 billion worth of tariff hike on Chinese goods.
3. Markets fell in Asia in the morning but recovered some ground.
4. China is slightly positive, Japan is positive due to its safe heaven status.
5. Nifty moved more than 100 points every day for the last 5 days.
6. Three down moves and two up moves.
7. Yesterday the fall was not only due to Global cues, mainly due to local cues.
8. So I feel markets may consolidate at lower levels.
9. There may not be any significant down move today.
10. Call ratio spread will be a good idea in this kind of markets.
11. I have bought 10500CE and sold double the quantity of 11700CE in October series.
12. This is a low risk low reward strategy.
13. Those who want to make quick bucks, can consider selling 11600CE on every bounce in Nifty.
14. I still feel that Nifty has bottomed out at 11250 for the short term.
15. Since there are only 7 more trading sessions, time value will work in our favour.
16. I am also planning to sell 11400CE, buy 11400CE in October and 11600CE.
17. Crude is slightly down but dollar index is up.
18. 11400 short straddle is also a good idea at this point of time.
19. Nifty may consolidate between 11360 and 11450.