Pre Market Report, March 6, 2019 | Stocks and Commodities

March 6, 2019
Time: 8 am

Pre Market Report:

1. Yesterday bears were trapped.
2. SGX Nifty was down by about 100 points, apparently for no reason, but Nifty future shot up more than 200 points from SGX Nifty low.
3. Advance decline ration was very high at 6:1.
4. PSU stocks did very well after Rs 11 dividend from REC.
5. The stocks where huge shorts were built up, seen good amount of short covering.
6. India Bull Housing Finance was up by more than 10%.
7. However yesterday night US markets fell marginally.
8. Asian markets are mixed.
9. SGX Nifty is up by 25, 30 points.
10. Yesterday's trade seems to be a clear breakout.
11. Bank Nifty has out performed.
12. Last upswing, Nifty was at 11150 and Bank Nifty was at 27600.
13. Now Bank Nifty has hit that high but Nifty is still about 150 points lower.
14. Yesterday except IT index, all other indices were up.
15. India VIX also fell.
16. So I am selling Put options aggressively.
17. My Bank Nifty 27000 straddle may be in trouble if markets continue to move higher.
18. But sold lot of Put options.
19. Now I have March 7 expiry 26500, 26800, 27000PE and March 14 expiry 27000PE.
20. In addition, I sold March 7, 27600PE and bought March 14, 27500PE.
21. If Bank Nifty continue to move higher, then all these additional positions will compensate the losses.
22. Expecting further up move in Bank Nifty, I bought 27500CE and sold 2X28000CE.
23. I will make money if Bank Nifty trades between 27500 and 28000.
24. Will review once Bank Nifty touches 28000.
25. So now I have short straddle, sold lot of puts, calendar spread, call ratio spread.
26. FIIs and DIIs were net buyers.
27. Gold is down.
28. Crude is also struggling around US$65.
29. So there is no reason for markets to fall in the very short term.
30. However, if you chase the markets, it is not good.
31. Go long on every intraday dip of at least 30 points in Nifty and 100 points in Bank Nifty.
32. I am planning to sell Bank Nifty 27200PE, 27000PE for tomorrow expiry.
33. Nifty future may trade between 11000 and 11100.