Pre Market Report, November 12, 2018 | Stocks and Commodities

November 12, 2018
Time: 8.20 am

Pre Market Report:

1. US markets closed lower on Friday.
2. SGX Nifty hit a low of 10525 on Friday night.
3. Asian markets opened lower mostly in the morning.
4. But recovered little bit now.
5. Many Asian markets have turned positive, though marginally.
6. Hng Kong swinging between plus and minus many times.
7. US and European futures are higher.
8. SGX Nifty also recovered abot 30 points from intraday low today.
9. Now SGX Nifty is trading slightly higher than 10600.
10. OPEC planning to cut the oil output supporting the Crude at the lower levels.
11. For the last 5 trading sessions, Nifty has been trading between 10500 and 10600.
12. It looks like today also that may be the case.
13. But in this process of consolidation, Option writers have made very good money.
14. Nifty 10600 short straddle which I did just few days before has hiven Rs 70 per share as profit.
15. I sold for a combined premium of Rs 360, so my break even is 10240-10960.
16. In addition sold lot of 10000PE and 9900PE.
17. Bank Nifty strategy is not doing well. I did short straddle at 26000 expecting Bank Nifty to move higher.
18. Downside protected by doing a ratio spread, "Buy 25500PE, sell 2X24500PE".
19. Sold Bank Nifty weekly options of 26200CE and 26300CE.
20. State election polling starts today.
21. Exit poll results will be out on Dece 7, which is Friday.
22. Markets will factor in the Exit poll results on Monday 10th Dec.
23. On 11th Dec actual results will be declared.
24. US-China Trade talks and State Election will dominate the trades for the next few weeks.
25. If the Nifty future trades below 10600, I am planning to short Nifty and planning to sell some Put options.
26. Titan will be in focus after results and Auro Pharma will be in focus ahead of results.
27. Expecting Nifty to trade between 10400 and 10800 this week.
28. Option prices may go down as we have only 13 trading sessions.
29. Today ecvening IIP and Inflation data will be out.
30. Bank Nifty may trade between 25200 to 26200 this week.
31. Today Nifty may trade between 10580 and 10650.
32. Nifty future may slide to 10520, if there is any bad news or weakness.