Pre Market Report, May 31, 2019 | Stocks and Commodities

May 31, 2019
Time: 8.35 am

Pre Market Report:

1. US markets closed slightly higher.
2. But after markets, Trump announced tariff against Mexico.
3. Now Dow futures fell suddenly after this news.
4. China PMI data came below 50 which is a sign of contraction in Economy.
5. But China markets are slightly higher as this bad news brings the expectation of further stimulus.
6. Brent Crude trading around $65. This was trading around $75 few days before.
7. So global cues are not great.
8. But in India, new Govt honeymoon starts.
9. That is supporting the market.
10. Ministers portfolio will be announced anytime soon.
11. RBI policy is on next Thursday.
12. These two are key events for this week.
13. I am expecting Nifty to trade between 11500 and 12400 in June series.
14. If monsoon progresses well, we may trade with positive bias.
15. Once May 23 high is crossed, Nifty may move 100 to 150 points very quickly.
16. I am holding Nifty 12000 short straddle, done at around Rs 400.
17. I will be safe as long as Nifty is trading between 11600 and 12400.
18. If there is any up move in Bank Nifty, I am planning Bank Nifty 32000 short straddle.
19. That is because I am bullish in Bank Nifty.
20. Even at the beginning of May series, I conducted a poll, "Will Bank Nifty out perform Nifty in May?"
21. In May series, Nifty was up less than 2% but Bank Nifty was up by more than 5%.
22. Shorting the market is not a good idea.
23. Markets may trend in June and July.
24. I am expecting 40 to 50% rally in the next two years. That is long term view.
25. Nifty future may trae between 11920 and 12040.