Pre Market Report, April 23, 2019 | Stocks and Commodities

April 23, 2019
Time: 8 am

Pre Market Report:

1. Expiry week not started well.
2. Yesterday markets fell drastically, from pre market SGX Nifty level 11800 plus to around 1160.
3. It was more than 200 points fall, thanks to Crude prices.
4. It was a Crude shock to the bulls from Crude prices.
5. HDFC Bank was consensus positive play but fell more than Rs 50 intraday.
6. That has the potential to bring Bank Nifty more than 500 points.
7. Bank Nifty opened higher in Pre Market and fell more than 600 points intrday.
8. Markets are in consolidation mode for the entire April series.
9. Last expiry Nifty closed at 11570 and yesterday it closed at 11594.
10. Whenever huge rally happens, that is always followed by consolidation.
11. Last series Nifty shot up from 10700 to 11600.
12. Today Kotak Bank may come under pressure due to the news flow.
13. That is again another index heavy weight in Bank Nifty.
14. Despite such a sharp fall of more than 200 points in Nifty and more than 600 points in Bank Nifty, FIIs were net buyers in Cash market, though the buying was very little, less than Rs 50 crore.
15. The fact is that they are not selling.
16. Both HDFC Bank and Reliance fell after the results.
17. India Bull fell 9% and Yes Bank 7%.
18. I have long positions in India Bull but have sold 1100, 1000, 950, 900, 850, 800CE.
19. Yes Bank also long at 270, sold 280CE, 300CE, then sold 270CE, 260CE and 250CE.
20. Struggling to make some profits in both stocks.
21. Also did a Nifty strategy: +1X11600CE, -3X11700CE, +2X11800CE.
22. Will make good profits if Nifty recovers and closes around 11700.
23. If today also markets are negative, I may do one more strategy: +11600PE, -3X11500, +2X11400PE.
24. Once I do this I will make more profits if Nifty closes around 11500 or 11700.
25. FIIs have bought Options worth more than Rs 3000 crores.
26. Probably they are hedging their long positions.
27. In the last 3 weeks Nifty took support around this level many times.
28. So Nifty should take some support here, if not the fall can be more severe.
29. Selling naked Calls in Bank Nifty above 30500 is also a good idea.
30. Nifty future may trade between 11580 and 11720.