Pre Market Report, May 10, 2019 | Stocks and Commodities

May 10, 2019
Time: 8.20 am

Pre Market Report:

1. US markets fell as Trump said :China broke the deal".
2. But later it recovered as Trumpsaid, "Xi wrote a beatiful letter"
3. Today Asian markets are higher.
4. SGX Nifty hit a low of 11215 yesterday night.
5. From there, it shot up to 11350.
6. It was a great recovery of 135 points.
7. I will not be surprised if markets open gap up.
8. If there is any gap up, first uptick may be sold into.
9. If markets sustain the up move, then we can assume that 11215 (SGX Nifty low yesterday) will be the low until May 23.
10. US and European futures are higher.
11. I will not be surprised even if we gap up.
12. The main problem is Reliance, now traders do not rely on Reliance.
13. Today SBI results will be a key issue.
14. Bank Nifty has already fallen nearly 2000 points.
15. Usually SBI will turnaround the sentiment in Bank Nifty during the worst periods.
16. Let us see what happens to SBI, PSU Banks and Bank Nifty today.
17. Tonight there will be some news about US-China Trade as talks will end today.
18. So there is a possibility of huge gap up or gap down on Monday.
19. So traders may not like to carry positions over week end.
20. Since markets have fallen continuously, most of the traders may be holding short positions.
21. So there is high probability of short covering rally today.
22. If SBI results are good, that will act as a Trigger for that short covering.
23. US-China Trade deal is a binary event, so it is better to keep positions very light.
24. If possible I am planning to close all the positions.
25. We have just 10 trading sessions ahead of D-Day.
26. Once US-China trade related uncertainties are over, election uncertainties will take over.
27. While writing this blog, SGX Nifty fell by 35 points, now trading around 11315.
28. Though markets fell for the last 2 days, India VIX also fell on both days.
29. SO we need to see what happens to the VIX, as long as VIX is falling, we can assume that the downside is limited from her.
30. Despite markets falling so much, my Bank Nifty 30000 straddle is still in profit.
31. But made lot of money from reference trades.
32. Today Nifty future may trade between 11280 and 11420.