Pre Market Report, September 24, 2018 | Stocks and Commodities

September 24, 2018
Time: 8.15 am

Pre Market Report:

1. On Friday market had one of the worst days after Lehman brothers collapse.
2. Yes Bank and India Bulls Housing Finance, both Nifty 50 stocks, fell more than 30% intraday.
3. DHFL fell more than 60% and Infibeam fell more than 40% intraday.
4. Bank Nifty fell more than 1500 points intrday.
5. Brent crude is inching towards US$80.
6. On Satrday, China cancelled the trade talk with US.
7. Today the tariff hike comes into effect, US tariff hike of 10% on S$200 billion of Chinese goods and China tariff hike of 10% on US$60 billion worth of US goods.
8. SEBI and RBI issued statements syaing that they are closely monitoring the situation. Only a feel good statement, nothing more.
9. But despite all the mayhem, both FIIs and DIIs were net buyers.
10. Even in F&O, FIIs were buyers in futures.
11. So Rupee, Crude, US-China trade issues, all turning in favour of bears.
12. Bulls can hope Govt. or SEBI or RBI will do something.
13. SGX Nifty is down by about 30 points.
14. Makets should consolidate after such a big fall on Friday.
15. It may consolidate with a negative bias.
16. There may be some short covering here and there.
17. People like me hoping for some consolidation sothat option premiums will collapse.
18. If markets consolidate, India VIX may come down, since Time decay also will be fast, premiums will collapse.
19. I still feel Nifty will take support at 11000.
20. So if 11120 is broken, then I plan to buy 11100PE and sell 2X11000PE.
21. I do have call options across the spectrum, from 11200 to 11500.
22. Do not create any naked positions, always go with protection.