Pre Market Report, May 15, 2019 | Stocks and Commodities

May 15, 2019
Time: 8.40 am

Pre Market Report:

1. US markets recovered some losses as there was no more negative news flow.
2. Asian markets are generally positive.
3. SGX Nifty is almost flat.
4. Yesterday markets were highly volatile.
5. Bank Nifty shot up 500 points but in 12 minutes fell 400 points and then recovered about 200 points.
6. FIIs have sold for more than 2000 crores in Cash market and DIIs have bought for almost equal amount.
7. We can expect the volatility continue, in fact to rise further.
8. China Industrial data and retail sales data came and were not good.
9. But markets are not reacting negatively.
10. After falling for 9 straight days, we have closed in Green yesterday.
11. Looks like we are in over sold condition still.
12. Further recovery is possible as long as there are no negative news flow.
13. Many traders will like to close the positions this week and will like to be away for next week.
14. That can bring bring volatility even this week.
15. I am also planning to exit all my positions.
16. Will be keeping only long term investments and will do portfolio hedging only.
17. Put premiums are so high, Bank Nifty 25200PE is trading around Rs 80.
18. That is nearly 15% below the current market price.
19. Even one lower freeze, buyers will lose on May 23.
20. I have sold some Put options from 26500 to 25200 and selling Call options in weekly.
21. Nifty future may trade between 11180 and 11340.