Pre Market Report, May 6, 2019 | Stocks and Commodities

May 6, 2019
Time: 8.15 am

Pre Market Report:

1. Three days before there was a news in Bloomberg that US-China Trade deal could be announced as early as this FRiday.
2. Again it was a source based news.
3. Since I was too busy with Optins Conclave, I just tweeted yesterday.
4. But by that time China decided to cancel or postpone trade talk due to Trump Tweet threatening another tariff hike.
5. After a long time, Trump Tweet effet is playing in the market.
6. North Korea launched a missile after nearly 2 years and that is also likely to affect the Global markets.
7. China and Hong Kong fell more than 3%.
8. But SGX Nifty is not showing big negative.
9. Nifty future closed here at 11762, now SGX Nifty is trading 11683 which is just 80 points down.
10. Crude prices down by more than 2% and that will cushion the fall here.
11. Trump Tweet comes at a time when most of the Global markets are trading close to all time high is not good.
12. Profit booking and shorting can bring the markets significantly.
13. Friday Reliance, HDFC Bank, Kotak Bank hit all time high.
14. So far 11800-11850 has acted as huge resistance for Nifty future.
15. At the same time 11600-11650 also acted as huge support for Nifty future.
16. So we need to see if the fall will be arrested after a big gap down.
17. ICICI Bank will be volatile ahead of its results today evening.
18. China Central Bank reduced CRR for some banks to reduce the impact of Trump Tweet, still it is down by nearly 4%.
19. So the take away in this saga is that never predict out come of any event.
20. That includes election results.
21. Dow futures down by about 500 points.
22. Over the weekend HUL results were not good.
23. But that seems to have been priced in the market.
24. HUL has been under performing Nifty for the past many weeks.
25. Friday Bank Nifty out performed. We need to see what happens today.
26. Bank Nifty Call options shot up on Friday, today Put options may shoot up.
27. Perfect day if anyone wants to do Short Straddle.
28. I am planning to do some short straddle Bank Nifty at 30000.
29. If premium is more than 2000, I will do.
30. Nifty future may trade between 11620 and 11760.