Pre Market Report, October 10, 2018 | Stocks and Commodities

October 10, 2018
Time: 8.25 am

Pre Market Report:

1. US markets closed mixed after a volatile session.
2. Asian markets are mixed.
3. SGX Nifty trading about 20 points higher.
4. Yesterday after 2.30 pm, markets were volatile.
5. Nifty fell more than 100 points in the last one hour.
6. Despite the volatility, on a close to close basis, markets did not fall much in the last two days.
7. Signs of stability is seen in many stocks.
8. However stock specific actions continue, like Tata Motors, Titan, etc.
9. Today results season is starting with TCS
10. I am planning to sell TCS 2400CE if it trades above Rs 10.
11. That is a neat 15% higher strike, with the kind of bearishness, TCS is not likely to shoot up 15% in 10 days.
12. SBI buying NBFC loans may be a good news for NBFC stocks.
13. Crude is also slightly lower.
14. Highest open interest shifted to Nifty 10000PE.
15. Since markets fell drastically, people who have sold Put option would have gone short in futures.
16. Since India VIX is on downtrend, people are squaring up the shorts and Put options.
17. I was short at 11000 and sold 11000PE, yesterday I closed the positions.
18. Same way, I was short at 10700 and sold 10700PE, that also closed yesterday.
19. So the open positions of ITM options will come down and OTM options will increase.
20. That is why Nifty 10000PE became the strike where highest OI is there.
21. Yesterday morning I sold Bank Nifty 22800PE at Rs 80, 81, then squared up at Rs 60 and then again sold at Rs 85, 86.
22. That seems to be a fair bet right now.
23. India VIX is likely to move further.
24. Nifty is likely to trade within yesterday's range.
25. Bank Nifty is likely to be more volatile.