Pre Market Report, March 28, 2019 | Stocks and Commodities

March 28, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed lower marginally.
2. But at one point, Dow was down more than 200 points.
3. Asian markets are following US markets.
4. SGX Nifty is also down by 30, 35 points.
5. But we have not been following Global cues for the last few weeks.
6. March is an extraordinary month and the last month of March is even extra ordinary.
7. Markets are sol volatile, traders are chopped off both sides.
8. Bank Nifty future at 30100 on Friday, 29200 on Mondy, 30250 on Wednesday morning and 29800 on Wednesday afternoon.
9. Yesterday Bank Nifty future fell 500 points and then shot up 300 points all in minutes.
10. Usually when markets are hugely volatile, the expiry will be much less volatile.
11. But what is surprising, FII buying, no matter what happens to the market.
12. FIIs have bought for 29000 crores in 19 trading sessions.
13. However DIIs are in profit booking mode, sold for Rs 13000 crores.
14. Usally FIIs bother about Global cues but this time they are just buying taking India specific view.
15. ATM straddle 11450 is trading around Rs 65.
16. So if markets are not volatile, Nifty is likley to expire between 11400 and 11500, so that these writers will make some money.
17. Yesterday it was all about Banks, beaten down bank like Yes Bank and IndusInd Bank shot up.
18. Axis Bank hit 52 week high. ICICI also did very well.
19. But Auto stocks are under huge pressure.
20. Reliance has also been volatile, moving between 1380 and 1320.
21. While writing the blog, Asian markets are recovering slightly and SGX Nifty has also recovered about 20, 25 points.
22. In my opinion, markets will trade rangebound for most part of the day and there will be some sharp move, most probably on the higher side in the last hour of the trade.
23. My positions will be safe if Nifty closes between 11450 and 11500.
24. On any dip I am looking to sell put options and on rise, I am looking to sell call options.
25. Yesterday in one account I sold 30200, 30300, 30400, 30500, 30600, 30700, 30800CE and 30000, 29900, 29800, 29700, 29600, 29500PEs.
26. All PEs are at break evn points and all CEs are in very good profits.
27. Hoping to make good profits, will adjust positions if required.
28. Huge OI at 11500 shows resistance at 11500. In case if there is any short covering and Nifty future crosses 11520, then these writes will be in panic and will propel the markets even higher.
29. Max Pain is at 11400 for Nity.
30. In Bank Nifty 30200CE has huge open interest and Modified Max Pain (which is more reliable than Max Pain during high volatile days) is at 30000.
31. So it seems that upside is capped in both Nifty and Bank Nifty.
32. Nifty may expire between 11400 and 11500.
33. Bank Nifty may expire between 29800 and 30200.