Pre Market Report, May 24, 2019 | Stocks and Commodities

May 24, 2019
Time: 8.30 am

Pre Market Report:

1. Everybody was expecting 2014 or 2009 kind of move in markets.
2. But markets moved like 2014.
3. In 2014, Nifty shot up 400 to 500 points and then huge profit booking came and Nifty closed just 100 points higher.
4. Yesterday also Nifty shot up, huge profit booking came and Nifty closed about 80 points lower.
5. Day before yesterday, option premiums were very huge.
6. All option premiums collapsed.
7. Nifty 11800 straddle fell nearly 280 points.
8. Bank Nifty 30000, 30500, 31000 all straddles fell from 900 to 1000 points.
9. Since morning HDFC Bank was not doing well.
10. FIis have bought for more than Rs 1000 crores in Cash market.
11. Now there is a stable Government, markets should go up in the long term.
12. Short term dips are buying opportunity.
13. Today I am planning to buy some shares or sell ATM puts in order to take delivery if it falls.
14. Looking at ITC, HUL, YES Bank, India Bull Housing, Power Grid, ONGC, Hero Moto Corp.
15. India VIX crashed as expected.
16. This month whatever strategies suggested, everything gave good profit.
17. US China Trade war continues.
18. That is a drag for entire Global markets.
19. So we may choose this dull period to add more shares to the portfolio.
20. Now the event is gone, we can expect Nifty to trade between 11600 and 12000.
21. PSU Banks may do well in the coming months as both SBI and BoB came with good results.
22. Crude oil fell significantly, so OMC stocks will see a good traction.
23. US markets recovered some losses in the last hour of trade.
24. SO Asian markets are mixed.
25. SGX Nifty is up by about 60, 70, points.
26. Today there may be a sharp up move towards the end of the day, if markets are sideways in the first half.
27. Next few days may be calm after the storm.
28.  Markets may consolidate until US-China trade wars gets resolved.
29. Premiums may continue to fall and hence India VIX.
30. Nifty future 

may trade between 11680 and 11820.