Pre Market Report, December 6, 2018 | Stocks and Commodities

December 6, 2018
Time: 8.15 am

Pre Market Report:

1. US markets were closed yesterday.
2. So every one thought there will be no global cues today.
3. Everyone expected markets to open almost flat.
4. But the news came that China's Huawei CFO, the daughter of its Founder, arrested in Canada on US request.
5. That created some panic when US futures opened for trading in the early morning.
6. S&P 500 futures fell 1.9% at the open, the selling was so intense, CBOE had to halt the trading system for a while.
7. Some speculate that there were some error trades.
8. As a result, Nifty is opening gap down.
9. Already the OPEC meeting is a negative news for us.
10. I did Bank Nifty Iron Fly at 27000 day before yesterday, yesterday I sold Call options at 26800, 26900, 27000, 27100.
11. Closed all the positions at the end of the day with some profits.
12. Again sold Call options of 26900 and 27000.
13. One good thing is that people may not be ready to short ahead of election results.
14. In case if election results go against them, the loss will be evry high.
15. Yesterday both FIIs and DIIs have sold in Cash market heavily.
16. So US futures, OPEC meeting, FII selling, DII selling all turning negative for us.
17. We may not follow Global cues very closely due to soft Crude prices and Election results.
18. Anyway next few days of trading is going to be very challenging.
19. Dow fell more than 1000 points in two consecutive trading sessions many times this year.
20. In fact 2018 is a very challenging year for all traders, not only equity, in all other asset classes also.
21. My postions are very light ahead of election results.
22. Most of my positions are in weekly options which will expire today.
23. Be ready for 10200 or 11200 in the next few days.
24. Nifty future may take support at 10720.
25. Resistance will be at 10820.