Pre Market Report, May 22, 2019 | Stocks and Commodities

May 22, 2019
Time: 8.20 am

Pre Market Report:

1. US markets are in "One day up, one day down".
2. Asian markets are mixed.
3. SGX Nifty is slightly higher.
4. Yesterday Nifty fell 200 points from intraday high.
5. Bank Nifty fell 600 points from intraday high.
6. Today IndusInd Bank will declare results and that will add volatility to Bank Nifty.
7. Yesterday also FIIs have bought for more than Rs 1000 crores in Cash market.
8. Reliance supported the markets yesterday.
9. Kotak Bank and HDFC Bank came under selling pressure in late trade and that brought Bank Nifty down.
10. Today we have to see how these heavy weights move.
11. IT stocks also fell yesterday.
12. Markets are likely to be highly volatile ahead of counting day.
13. ATM straddle trades at Rs 540 which is about 5%.
14. So markets expect 5% move tomorrow.
15. We may consider selling 11800 straddle if it trades around Rs 550.
16. Tomorrow morning, we have to put SL buy at 12300 and SL sell at 11300.
17. If SL buy triggered, then we have to sell June 12500CE and if SL sell triggered we have to sell June 11000PE.
18. This strategy will give some profit. If Nifty trades between 11300 and 12300, then without doing any additional trades, we will make some profit.
19. This is neutral strategy.
20. In case, if you are bullish, then sell 12000PE in May and buy 12000PE in June. In addition, sell 12500CE in May.
21. If markets go down, then nothing to lose.
22. If markets move higher, the moment Nifty touches 12000, close the 12000 Put calendar and do 12500 Put calendar.
23. Both these strategies should give good profits.
24. Additionally, these two strategies should complement each other to some extent.
25. Third strategy: -1X11800PE, +2X11600PE if you are bearish and -1X11600CE, +2X11800CE if you are bullish. 
26. Let us see how these 3 strategies perform tomorrow.
27. Today be ready for high volatile trades, particularly, in last one hour.