Pre Market Report, October 9, 2018 | Stocks and Commodities

October 9, 2018
Time: 8.10 am

Pre Market Report:

1. US markets were weak at the open but recovered later.
2. Asian markets are mostly down.
3. Hong Kong is swinging between plus and minus, making SGX Nifty also to swing.
4. SGX Nifty is trading around 10380, almost flat.
5. Yesterday Nifty swung 700 points.
6. Yesterday was the most volatile day.
7. But towards the end of the day India VIX cooled down a bit.
8. Crude is higher slightly.
9. Any further flare up in Crude prices, markets will feel the pressure again.
10. FIIs have sold heavily as usual.
11. DIIs have bought heavily as usual.
12. From 2008, we had many corrections of more than 10%.
13. But none of the time Nifty violated previous corrections low.
14. So we can assume Nifty 10000 will be a strong support.
15. Bank Nifty 22800PE is trading at over Rs 90, those who dare to sell, can make very good profit.
16. I suggested "Buy 23000PE 1 lot and Sell 22800PE 2 lots".
17. While writing the blog, many CNBC experts are talking about long postions than short positions.
18. Metal stocks fell yesterday.
19. It may continue today also.
20. Reliance has recovered yesterday and that supported markets yesterday.
21. Now the focus will shift to TCS due to results.
22. I am planning to sell DHFL 160PE, ready to take delivery if it falls below 160.
23. Time to accumulate good stocks, still there is a fear of further downside, instead of buying, selling Put options about 5 to 10% lower strike.
24. PC Jeweller 20PE also I sold last time by the same logic.
25. Now also 20PE in PC Jeweller trading at Rs 0.25.
26. India Bull Housing Finance is one share that is doing very well.
27. But finding difficult to cross 1000.
28. I have long positions for many clients.
29. For one client I went short at 950 and sold 940PE yesterday.
30. Ban Nifty 25000 straddle which I did many days ago is still in profit despite such a huge volatile market.
31. Bank Nifty ratio spread "Buy 24000PE, sell 2X23500PE in monthly and sell 24000PE in weekly" is also doing well.
32. Yesterday I did "Buy 25000CE and sell 2X25500CE in monthly and sell 25000CE in weekly"
33. So which ever way Bank Nifty moves, my positions will give profit.
34. Will make losses only if Bank Nifty moves violently, more than 1000 points.
35. Nifty future may trade between 10320 and 10480.
36. If it goes towards the lower band, plan to sell 9900PE.
37. If it goes towards the higher end, planning to sell 10800CE.