Pre Market Report, September 25, 2018 | Stocks and Commodities

September 25, 2018
Time: 8 am

Pre Market Report:

1. US China tariff hike on each others products came yesterday.
2. That created negativity in all markets.
3. Our markets which were bearish already, fell.
4. Nifty fell nearly 170 points despite very good show by TCS, Infosys and Reliance.
5. Bank Nifty fell 1700 points from Fridays high to Mondays low.
6. People were asking me the strategy for Bank Nifty.
7. Right now I am simply selling Call options.
8. On Friday I sold Call option at 26000, 26100, 26200 and 26300.
9. Yesterday again I started from 26000, gradually started selling 25900, 25800, 25700, 25600 and 25500.
10. Bank Nifty 26000CE sold on Friday around closing time at Rs 140 closed around Rs 10 yesterday.
11. But Bank Nifty is in huge oversold condition, RSI on hourly chart at 11 and daily chart at 17.
12. I have not seen this kind of over sold conditions in the last many years.
13. Yes Bank has not recovered. This time the crash is because of NBFCs.
14. SInce IndusInd Bank merging Bharat Finance (SKS Micro) IndusInd bank fell much more than other banks.
15. Bank Nifty may see some short covering if there is any good news.
16. Whether that will happen in this series is a billion dollar question.
17. DHFL recovered but India Bull Housing Finance fell.
18. FIIs have sold for about Rs 500 crores in Cash market while DIIs have bought for about Rs 1500 crores.
19. Let us see whether markets consolidate around 11000 which is a psychological support.
20. 100DMA around this level and 62.8% Fibbonacci retracement around 10900 indicates good consolidation between these two levels.
21. Crude is giving a crude shock to India.
22. Hong Kong and Soth Korea markets closed, so at least we do not have bad clues from Hong Kong.
23. US signed trade agreement with SOuth Korea and that is a good news.
24. Now auto stocks started falling severly.
25. Nifty future may trade between 10950 and 11080.