Pre Market Report, March 26, 2019 | Stocks and Commodities

March 26, 2019
Time: 8 am

Pre Market Report:

1. US markets closed flat after a volatile session.
2. Asian markets are mostly trading in Green.
3. But there is no reaction in SGX Nifty.
4. SGX Nifty is trading slightly lower.
5. Yesterday both FIIs and DIIs did not buy or sell much.
6. FIIs bought for Rs 150 crore and DIIs sold for Rs 12 crores.
7. US yield curve inversion news roiled the markets all over the world.
8. Since our markets shot up 900 points in last few weeks, we seing huge selling pressure.
9. Nifty 11400CE added huge open interest making upside move limited.
10. Max pain has come down to 11300.
11. Bank Nifty added huge open interest from 29300CE onwards.
12. But who knows, these huge option sellers will propel the market higher if there is any short covering.
13. After falling severly for 2 days, we may consolidate.
14. Nifty expiry is likely to be between 11300 and 11500.
15. There was huge selling in Index heavy weights like Reliance, ITC, HDFC, Kotak Bank, etc.
16. Surprisingly REC was up by 11% in this kind of market.
17. There are many other stocks also did reasonably well.
18. HDFC Bank did not fall, otherwise Bank Nifty would have fallen even more.
19. I used the dip to cover my long term options, I sold June 12000CE at Rs 280 few days before, closed at Rs 225.
20. But I am in trouble with Bank Nifty 29200PE and 29000PE which I sold on Friday.
21. To hedge, I sold 29600CE, 29700CE and 29800CE yesterday.
22. Hopefully I get out without any loss if markets stabilises.
23. I will be happy if Bank Nifty expires between 29400 and 29500 and Nifty between 11400 and 11450.
24. If the conditions are favourable, I might exit positions today or tomorrow also.
25. If there is a bounce in Reliance and Kotak Bank, then I will be able to exit.
26. Rupee is strong, Crude is soft, FIIs are not selling, still they are buying. These are positives for our markets.
27. April Futures are trading at a huge premium of over 60 points shows the underlying bullishness.
28. On any bounce one can sell Nifty 11500CE.
29. Calendar spreads may not work due to huge premium in April series.
30. If you think there will be some short covering rally then do -1X11500PE in March and +1X11400PE in April.
31. Nifty future may trade between 11320 and 11420.