Pre Market Report, September 7, 2018 | Stocks and Commodities

September 7, 2018
Time: 9 am

Pre Market Report:

1. US markets closed mixed once again.
2. Technology stocks are falling once again.
3. Most Asian markets are down, but China is up.
4. SGX Nifty is up slightly.
5. Yesterday as well as day before yesterday, Bank Nifty as well as Nifty was highly volatile.
6. Yesterday, even best people could not make money due to such a huge volatility.
7. I lost Rs 1.5 lakhs in one account due to some error trade.
8. Even for other accounts, profits were below expectation.
9. On net basis, there was no selling by Institutions but the fear is very high.
10. FIIs are buying options in huge quantities.
11. There was no news about China Tariff hike.
12. Many emerging markets have entered into bear markets.
13. Means, markets have fallen more than 20% from the peak.
14. Emerging market selling is so severe, this reminds Lehman Brothers time.
15. The only difference, that time all markets fell, now only emerging markets are falling.
16. We are not doing that bad as we are still 2 to 3% down from all time high.
17. We did not even lose last one month's gain in this fall.
18. Markets may go for consolidation between 11400 and 11800.
19. Ahead of US jobs data and likely announcement of China tariff, it is better to keep positions very light and completely hedged.
20. Option writes will be better if they do some strategies with some buy option.
21. Earlier I did "Sell 1X 11700PE and Buy 2X 11500PE" in order to cope with any gap down due to these risks.
22. In addition, I bought 11600PE and sold 2X 11400PE.
23. Also have covered Put. Means "Short in Nifty, sold ATM Puts"
24. Also sold 11700CE and 11800CE.
25. As a combination, I am maintaining slightly bearish view.
26. I will adjust the positions next week, if there is no major gap down.
27. Nifty future may trade between 11480 and 11600