Pre Market Report, March 25, 2019 | Stocks and Commodities

March 25, 2019
Time: 8.15 am

Pre Market Report:

1. US markets fell significantly on Friday on recession fear.
2. Yield inversion is the buzz word now.
3. Today Asian markets are also falling big.
4. But we have already fallen on Friday.
5. So SGX Nifty is showing about 60 to 70 points down.
6. One good thing is that Crude prices have fallen.
7. There was a block deal in HDFC Bank and there was some huge selling in Nifty future around 10540.
8. What was surprising on Friday, despite Nifty made intraday fall or 120 points and Bank Nifty made intraday fall of 500 points, FIIs were net buyers in Cash market for more than Rs 1000 crores.
9. I will maintain bullish view as long as Nifty future holds 11380.
10. April premiums are still very high.
11. SInce markets are lloking bearish, one can try the following strategy: April Nifty +1X11500PE and -2X11000PE. 
12. On any intraday bounce, I plan to sell 11550CE in March series. This will be naked call without any hedge.
13. Bank Nifty following strategy can be done: Bank Nifty April Future 1XShort, -1X29500PE, -3X27500PE, +1X30500CE, -3X31400CE.
14. Weekly options, one can sell 30000CE and 30200CE.
15. On Friday markets fell just because of Reliance and HDFC Bank which contributed 65% for the fall in Nifty.
16. I am expecting markets to consolidate around 11400.
17. Remember we have not beel following Global cues for the last few months and FIIs are still buying in Cash market.
18. So downside may be limited.
19. At the same time, since markets have shot up in the last few weeks, the upside may also be capped.
20. I am planning to sell some call options in April series, on any intraday bounce.
21. Nifty future may trade between 11380 and 11480.