Pre Market Report, December 24, 2018 | Stocks and Commodities

December 24, 2018
Time: 8.30 am

Pre Market Report:

1. US markets fell on Friday, Dow fell another 500 points for third day.
2. Asian markets are mostly down.
3. We can not read too much into today's activity.
4. Most markets function only for half a day.
5. Volumes will be very low and hence price swing will be high.
6. SGX Nifty was down by about 20 points in the morning, now it is almost flat.
7. Remember despite such a big fall on Friday, FIIs did not sell in Cash market, it was DIIs who sold heavily.
8. So at some point there may be some technical bounce.
9. US futures were swinging between Green and Red.
10. As per CNBC, Infosys may come out with buy back, which will improve sentiment in that counter.
11. I am regular movie goer, GST reduction may benefit me and movie related stocks like PVR.
12. Brent Crude is trading below $55.
13. Rupee below 70 per US$.
14. So the damage to our markets should limited.
15. US Govt shutdown, news of Fed Chaiman being fired and then news of denials, all these not good for US markets.
16. Nifty future should take support at 10720.
17. Though markets will be volaile, option premiums may start falling as VIX is not likely to shoot up much from here.
18. One can consider selling 10500PE and 10900CE as expiry is likely to between these two figures.
19. Towards the end of the day, we can exepect a small upside move if Global cues are not bad. 
20. Any up move in between, I am planning to buy Bank Nifty 27000PE and sell 2X26800PE.