Pre Market Report, May 21, 2019 | Stocks and Commodities

May 21, 2019
Time: 8.15 am

Pre Market Report:

1. American suppliers stopped their products and services to Huawei.
2. That dragged Nasdaq more than Dow and S&P 500.
3. But today morning Asian markets are stabilising.
4. Even US futures are higher.
5. SGX Nifty is slightly higher.
6. Yesterday Bank Nifty shot up more than 1300 points.
7. EVen dusring black swan events, Bank Nifty moved only 1200 points.
8. So this is clearly a black swan event on the upside.
9. NDA victory has been factored in by this rally.
10. So on 23rd, if the poll results are same as exit poll results, markets may move another 2 to 3%.
11. In case BJP gets majority on its own, the rally may be more, 4 to 6%.
12. But, in case, if NDA fails to get majority, markets may crash more than what they rose yesterday.
13. Anyway, there are two more days for that. Moreover results come during market hours and one can react.
14. Yesterday Bank Nifty hit all time high.
15. But Nifty is just 20 points away from all time high.
16. Today Nifty may also hit all time high.
17. Reliance is still down from its all time high, which has the potential to take markets higher further.
18. Still premiums are very high.
19. Yesterday I covered my short position Bank Nifty 28000PE at Rs 128, after that Bank Nifty shot up by 500 points and still 28000PE also shot up by more than Rs 30.
20. FIIs have bought for more than Rs 1700 crores in Cash market.
21. When they buy, they buy continuously and when they sell also do continuously.
22. All Banks have done well but still YES Bank is struggling.
23. YES Bank fell from 270 to 135 in few weeks time.
24. Due to major binary event, everyone has forgotten about corporate results.
25. Bank Nifty shot up more than 2000 points in 2 days.
26. Markets may consolidate and there may be evn some profit booking ahead of counting day.
27. So be ready for exiting days.
28. But one good thing is that India VIX started moving lower.
29. If I am not wroong, India VIX peaked out already, it may start moving lower.
30. Along with theta decay, option writers will enjoy next few days.
31. I sold Bank Nifty 27500, 27000, 26500PE in monthly options.
32. As long as Bank Nifty not crashing, these positions should give good profit.
33. HDFC Bank and Kotak Bank are in good bull grip even on Friday.
34. So we need to watch these two stocks for Bank Nifty move.
35. In fact these two stocks under performed in the morning trade yesterday, then started moving higher, that is why Bank Nifty made more than 700 points even from intraday low.
36. Rupee has appreciated and that is very good sign.
37. Pharma and IT may not do well in this rally.
38. FMCG stocks are picking up as they are beaten down heavily.
39. Bank Nifty may trade in the range 30500-31000.
40. Nifty may trade in the range 11820-11940.