Pre Market Report, October 23, 2018 | Stocks and Commodities

October 23, 2018
Time: 8.25 am

Pre Market Report:

1. Yesterday once again Nifty opened gap up of more than 100 points and that was sold into within few minutes.
2. As usual it was very volatile.
3. Since September 1, Nifty has been making more than 200 points and Bank Nifty making 500 points move every day.
4. Yesterday was no exception.
5. China markets shot up more than 6% in two days due to Govt. intervention.
6. Today it seems that it has died down, bringing all other markets down.
7. Hong Kong which was more than 600 points up yesterday, down by more than 400 points today.
8. It looks like the recent low of 10138 will be broken today.
9. That may create some sort of panic as more short sellers will enter the ring.
10. The put premiums are so high, it encourages strategists also to enter short selling.
11. Yesterday Bank Nifty November future closed aroud 25200 but 25000PE trading around Rs 650.
12. Somebody who is shorting, will have no problem even if Bank Nifty moves higher by Rs 650 in the next one month.
13. But if it falls there is a profit of Rs 850 per share, about Rs 35,000 per lot.
14. The more the markets fall, the more the short sellers and strategists will enter the market.
15. We should be happy if Nifty does not break recent low of 10138.
16. And we should be happy if Nifty expires above 10000 this Thursday.
17. Highest open interest in Nifty now stands at 10000.
18. So Nifty can go up to that level by this Thursday and may even breach that level for a short period.
19. Bank Nifty is holding the markets, if that breaks down, markets will collapse.
20. Nifty future may trade between 10120 to 10300.