Pre Market Report, May 23, 2019 | Stocks and Commodities

May 23, 2019
Time: 7.45 am

Pre Market Report:

1. Yesterday India VIX shot up by more than 7%.
2. Usually Postal ballots will be counted from 8 am to 8.30 am.
3. From 8.30 am, EVM votes will be counted.
4. This time, Election commission decided to start counting of both Postal ballots and EVM votes together at 8 am.
5. This means that we are likely to get the trend before our markets open at 9.15 am.
6. There is a possibility of huge gap up or gap down.
7. That could be the reason for spike in volatility.
8. Yesterday Option prices behaved irrationally.
9. I sold 32400CE at Rs 109, the prices did not go up even when Bank Nifty shot up 300 points.
10. But when Bank Nifty fell some 100 to 150 points, this CE came to Rs 80.
11. Then again Bank Nifty went up by about 100 odd points but this CE shot up to Rs 120.
12. Same goes for PEs, they also behaved irrationally.
13. Both FIIs and DIIs have booked some profit.
14. FIIs seems to have sold Options heavily to capture the Vega crash.
15. Global cues are not good.
16. But that does not matter today for Indian markets.
17. SGX Nifty is down by 40, 50 points, again that is also irrelevant.
18. Today nothing is irrelevant except Poll results.
19. Worst thing in stock market today is that people have taken positions based on their political orientation.
20. There is every possibility both supporters of BJP and Congress will lose to Stock Market Veterans.
21. So do not mix Business with Politics.
22. No point in taking about anything as only poll results will decide everything.
23. So enjoy the roller coaster ride.
24. Be ready for huge gap up or gap down.
25. No prediction of levels today.
26. Wishing all the traders "Happy D-Day"