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

April 26, 2019
Time: 8 am

Pre Market Report:

1. March expiry, Nifty closed at 11570.
2. April expiry, Nifty closed at 11641.
3. Just up by 71 points in April series.
4. But intraday volatility was so huge, Nifty moved more than 100 points almost every day.
5. That was a swing of about 2000 points.
6. Auto stocks held firm for first three weeks and came under severe selling pressure in the last week.
7. Bank Nifty has fallen about 900 points in April series, hugely under performing Nifty.
8. I made huge losses on two expiry trades, 3rd week and fourth week expiry.
9. This month my performance was worst in the last one year.
10. Coming back to May series, premiums are very high.
11. I expect Nifty to trade between 11000 and 12500.
12. I did a simple strategy, that is working well. If Bank Nifty falls more than 1000 point from the recent high, sell 26500PE.
13. If it shoots up more than 1000 point from recent low, close the positions.
14. Also having Bank Nifty 30000 straddle, done at Rs 2250, now trading around Rs 1950.
15. May series is going to be very difficult due to 4 reasons: (1) Corporate results, (2) 5 week long series, (3) Election results, (4) India VIX is hovering around 25.
16. India VIX is expected to touch 30 in the next few weeks.
17. Premiums will tend to shoot up.
18. Option sellers should play with less quantities.
19. HDFC Bank has been creating havoc in Bank Nifty.
20. Even after very good results, selling off.
21. Axis Bank came with decent numbers yesterday.
22. Tata Steel results were in line with expectation.
23. Today YES Bank will come out with results.
24. Maruti results were not good, Maruti has fallen by 600 points in the last one week.
25. Tata Motors also came under severe selling pressure.
26. SGX Nifty is trading almost flat.
27. Most Asian markets are down marginally.
28. US and European futures are also lower.
29. But FIIs have bought for about Rs 3785 crores yesterday while DIIs have sold slightly higher at Rs 4069 crores.
30. FIIs have rolled over mostly long positions.
31. People who hedge with options will be happy as premiums are very high.
32. Be ready for roller coaster ride in May, particularly in the last two weeks.
33. For the first week, it seems that markets will consolidate around this level.
34. We may not follow Global cues in this series.
35. Today Nifty future may trade between 11680 and 11820.