Pre Market Report, May 14, 2019 | Stocks and Commodities

May 14, 2019
Time: 8.45 am

Pre Market Report:

1. Yesterday I thought Nifty future will take support at 11220.
2. But in last half an hour, there were some commotion.
3. Sun Pharma fell 20% and PSU Banks index fell 5%.
4. That could have triggered some margin calls.
5. There was absolute panic, Nifty fell more than 150 points within minutes.
6. After the markets close, China hiked tariff for US products.
7. Dow futures was down by 250 points when we closed but Dow fell 700 points later.
8. SGX Nifty broke 11100 yesterday night.
9. Every one expected Hong Kong to react violently as it was closed yesterday.
10. But the reaction was not as bad as it was expected.
11. Today morning Dow futures recovered 150 points from low.
12. SX Nifty also recovered about 50 points from low.
13. Now it is trading around 11150, just slightly lower than 11153, low made yesterday.
14. Kospi wiped out all losses and now trading in Green.
15. Inflation data was better than expected, so banking stocks may stop bleeding today.
16. Since HDFC came with good results, HDFC, HDFC Bank will have to lead the recovery, if any.
17. My gut feeling says that 11080 will be the low until May 20.
18. I will look to create short positions if Nifty future breaks 11100.
19. I have some put positions, I have been selling weekly Call options to manage that.
20. Bank Nifty fell nearly 400 points, all panic came in the last 30 minutes.
21. I have sold 29200, 29300, 29400, 29500CE in weekly options.
22. I have 26500PE positions in monthly options.
23. I have taken some short positions also yesterday both Nifty and Bank Nifty.
24. Markets are down for 10 straight days, there is a possibility of some kind of short covering at any time, even if there is a small good news.
25. But that good news should not come from Trump, as nobody wants to believe him now.
26. Nifty future may trade between 11080 and 11220.