Pre Market Report, March 20, 2019 | Stocks and Commodities

March 20, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed mixed.
2. There was a news report that siad US-China trade progress has some problems.
3. US says China is pushing back on some important issues.
4. As soon as this news broke out, DOw gave up its gains.
5. Nasdaq closed in Green as IT stocks did well.
6. So Asian markets are also mixed.
7. COming back to our markets, yesterday's rally was surprising.
8. I thought markets will consolidate.
9. From 10700 to 11600, nearly 10% rally in two weeks.
10. Rally was mainly by ITC, Reliance, HDFC Bank.
11. Broader market also did well.
12. As usual FIIs have bought heavily while DIIs have sold heavily.
13. Weekly expiry will make our markets volatile today.
14. Bank Nifty max pain is at 29700.
15. Bank Nifty 29500PE and 30000CE have the highest open interest among puts and calls.
16. Huge open interest added in 29500PE and 29600PE yesterday in Bank Nifty.
17. Surprisingly only 30200, 30300CE only added open intterest yesterday.
18. In fact Call options premiums are very high, yet people do not want to sell Call options.
19. So expect Bank Nifty to expire between 29600 and 29800, but may trade between 29500 and 30000.
20. Similarly, Nifty Max pain is at 11500.
21. But huge open interest among PE are at 11500 and 11400.
22. I sold 11400PE at Rs 23, 11350PE at Rs 13 and 11300PE at Rs 7.50 yesterday morning.
23. Later sold some 11450PE and 11500PE also.
24. Nifty may expire between 11500 and 11600.
25. Bulls may become tired after such a big run and markets may consolidate.
26. Markets may be kittle bitter jittery ahead of Holi Holiday tomorrow.
27. That will make last half an hour very interesting.
28. So we can epect range bound markets until late afternoon and sharp move in the last hour.
29. Until then premium eating process will be on.
30. Nifty future may trade between 11500 and 11620.