Pre Market Report, May 29, 2019 | Stocks and Commodities

May 29, 2019
Time: 8.25 am

Pre Market Report:

1. US markets closed lower.
2. Yield Curve Inversion makes bears happy.
3. This is happening for third time in last one year.
4. Asian markets are mostly lower following US.
5. But SGX Nifty is trading flat with positive bias.
6. Premium for June futures is almost 50 points which is a bullish sign.
7. Many large caps like Bajaj Finance, SBI, ICICI Bank have given more than 10% return in May series.
8. I expect a big bull run, at least 10% rise in Index by October 2019.
9. We started with favorable election outcome in May, in June and July, progress of monsoon, if it is good, will aid the rally.
10. July and August, Q1 results will help the rally and September and October, production increase ahead of major festival will help.
11. If if everything goes well, we can expect Nifty to touch 13500 by October. 
12. This is long term view.
13. I am planning to do December 2019 short straddle and sell 13500CE.
14. This is to hedge my core portfolio. In case market goes sideways in long term, I will make money in these two strategies.
15. Otherwise, I know how to manage these positions.
16. Yesterday I said Nifty is likely to expire between 11700 and 12100.
17. But the trade was so volatile yesterday, particularly, last 40 minutes.
18. It was looking like expiry day.
19. Be ready for a volatile session today as well as tomorrow. 
20. Nifty future may trade between 11850 and 12000
21.