Pre Market Report, May 2, 2019 | Stocks and Commodities

May 2, 2019
Time: 8.20 am

Pre Market Report:

1. US markets closed lower after trading higher in the first half.
2. Fed maintained status quo, but markets expected some rate cut.
3. That was the reason why markets fell in US>
4. Anyway US markets are trading at all time high and some excuse is needed to book profits.
5. SGX Nifty hit a high of 11862 when Global cues were better yesterday.
6. But now it is trading around 11790, almost flat.
7. Max Pain for Nifty is at 11700.
8. Max Pain for Bank Nifty is at 29800.
9. Nifty 11700PE and 11800CE added more OI and 11700 to 11800 will be the range today until 3 pm.
10. Bank Nifty 29500PE and 30000CE added more OI and 29600 to 30000 will be the range today until 3 pm.
11. YES Bank alone brought both Nifty and Bank Nifty on Tuesday.
12. We have to see if YES Bank falls further today.
13. I sold 150PE naked in some accounts, if it falls below, prepared to take delivery.
14. HDFC Bank, KOtak Bank, ICICI Bank, Reliance, TCS, Infosys, HCL Tech looking good.
15. On the other hand NBFCs, Auto stocks looking bad.
16. Maruti sales data was not good. Maruti may come under pressure today also.
17. Maruti has fallen 35% from the peak and has fallen by 10% in the last few weeks.
18. With technical glitch that dealt a body blow for option writers last week, people will be reluctant to sell options today.
19. And hence premiums may be higher today.
20. Anyway for positional traders, flat opening is good.
21. I sold Bank Nifty 30000CE, 30100CE and 29500PE, 29400PE.
22. Flat opening will give good profit and that will buffer the intraday trades.
23. Crude is sightly down and that is a good news.
24. Markets may trade sideways and there may be some sharp move towards the end of the day.
25. Nifty future may trade between 11720 and 11860.