Pre Market Report, May 8, 2019 | Stocks and Commodities

May 8, 2019
Time: 8 am

Pre Market Report:

1. US markets fell drastically.
2. Dow fell about 700 points at one point of time.
3. But closed less than 500 points down.
4. Nifty had been trading between 11550 and 11850 for 6 weeks.
5. I mentioned earlier that this range will be broken before the election results.
6. But I thought this range will be broken on the upside.
7. Even on Friday afternoon Nifty future touched 11810.
8. Then this US-China Trade War news came over the weekend.
9. Everything changed in two days.
10. From 11810 on Friday afternoon, Nifty future touched 11440 on Tuesday night in Singapore.
11. This is a massive fall of about 400 points in 2 trading sessions.
12. Bank Nifty also broke the range on the downside with the help of ICICI Bank.
13. Still Kotak Bank and HDFC Bank are holding.
14. If they start falling, then Bank Nifty is likely to touch 28500.
15. The fear will continue until there is some clarity in US-China Trade Deal.
16. US-China Trade Deal is becoming a Binary event now.
17. By Friday if there is any agreement, markets will shoot up on Monday.
18. If there is no deal, then markets will crash on Monday.
19. Monday is going to be a very crucial day for Global markets.
20. There is a rumor floating around that BJP is likely to get only 151 seats as per their own internal estimates.
21. Some people say the fall is due to this news.
22. There is a reason to believe that as our markets are reacting more than US or China.
23. Yesterday after falling nearly 200 points from intraday high, Nifty future fell another 100 points in Singapore taking total fall in day to nearly 300 points.
24. No other Global market faced this kind of selling.
25. It could also be due to technical reasons, as the range broken, short sellers have become very active.
26. Even I sold Bank Nifty 29500, 29600, 29700, 29800, 29900, 30000CE in weekly expiry.
27. Despite such a huge fall, India VIX came down slightly.
28. In fact Bank Nifty 30000 straddle has not given any loss despite Bank Nifty falling 500 points intraday.
29. SGX Nifty indicating 60 points gap down.
30. Now markets trading range has been shifted from 11550 - 11850 to downwards 11300 to 11600.
31. Planning to sell Nifty call options from 11600 to 11800 in next week expiry.
32. Expect volatility to continue for next three days. 
33. Better keep away from markets until election results or do small quantity so that you have enough money for fire fighting.
34. Earlier I sold Nifty 11300, 11200, 11100, 11000PE and 12100, 12200, 12300, 12400, 12500CE.
35. I am planning to close all CE positions and do some protection for put positions.
36. Nifty future may trade between 11440 and 11580.