Pre Market Report, December 7, 2018 | Stocks and Commodities

December 7, 2018
Time: 8.20 am

Pre Market Report:

1. US markets fell at open as Huawei CFO was arrested in Canada on US request.
2. But later when the news came that Fed might delay the rate hike, markets recovered.
3. Nasdaq was up by more than 200 points from intraday low and closed in Green.
4. Though DOW closed in Red, it recovered most of its intraday losses.
5. Yesterday we fell more than expected.
6. But Bank Nifty fared little better.
7. Bank Nifty weekly expiry might have done the trick.
8. Max Pain was at 26200 and Bank Nifty closed at 26198.
9. This is the first time I watched Max Pain and made maximum profit.
10. Just in 2 accounts I made more than 17 lakhs profit.
11. Now Asian markets are higher.
12. SGX Nifty is trading closer to 10700.
13. That is a decent gap up of 70 to 80 points.
14. Today, closer to the end, there may be some sharp move.
15. Traders will not like to carry positions through weekend for 2 reasons.
16. (a) US jobs data today evening which is very imporatnt at this point when Fed is in dilemma whether to hike rate or not. (b) Exit poll results today evening and based on Exit poll results, markets may gap up gap down on Monday.
17. Exit polls may not give any clear indication. Exit polls by different media will paint different picture.
18. So I do not expect any big reaction on Monday.
19. But on Tuesday there will be some sharp move.
20. I am expecting at least 400 point move in Nifty.
21. If Nifty trades closer to 10700, then I am planning to do some back spread. 
22. Bakspread: Sell 10600CE and buy 2X1800CE, sell 10800PE and buy 2X10600PE.
23. Premiums are so high for next week Bank Nifty expiry due to election results.
24. Crude fell despite OPEC meeting.
25. Brent is below $60.
26. That is good for us.
27. Planning to sell 320PE in ICICI Bank.
28. Planning to sell 85 or 80PE in Ashok Leyland.
29. Prepared to take delivery if they fall below these strikes.
30. Nifty future may trade betwen Yesterday's low and day before yesterday's high.