Pre Market Report, May 9, 2019 | Stocks and Commodities

May 9, 2019
Time: 8 am

Pre Market Report:

1. US markets closed mixed.
2. Nifty closed lower for 6 straight days.
3. Today SGX Nifty indicates Nifty future opening below 11400.
4. That is lower than yesterday's low.
5. That is technically very bearish.
6. FIIs need to buy Rs 40000 crores to bring Nifty higher by 1000 points.
7. But they just need to sell only Rs 2000 crores to bring Nifty lower by 500 points.
8. Trump said, "China broke the deal"
9. China said it will retaliate if US announces tariff hike this Friday.
10. These two are news from bloomberg.
11. They are very important news, though markets are ignoring these news for the time being.
12. Most Asian markets are in Red, Australia is an exception.
13. SGX Nifty is trading around 11380 which is 40 points lower than yesterday's close.
14. Intraday volatility was very high yesterday.
15. Day's low was broken, within few minutes Bank Nifty shot up more than 200 points and then fell to break the low again.
16. FIIs have sold in Cash, STock Futures and Index Futures.
17. If there is any reversal, markets will shoot up just by short covering.
18. Bank Nifty closed below 29000. But Bank Nifty future premiums shot up. This shows people are reluctant to short at lower levels.
19. I sold Bank Nifty Call options in huge quantities from 29200 to 29500.
20. I als did a strategy: +1X29000PE and -3X28800PE.
21. In Nifty sold 11500, 11550, 11600CE.
22. So totally taken bearish view. Hoping to make profits in all strategies.
23. But intraday volatility may be high today.
24. Last half an hour I am expecting some sharp move.
25. If markets are weak in the morning, then there may be sharp up move between 3pm and 3.30pm.
26. Reliance has fallen Rs 130 in the last few days contributing more than 20% fall in Nifty in the last few days.
27. Long term investors can look at the stock.
28. Nifty may expire between 11300 and 11500 today.
29. Bank Nifty may expire between 28800 and 29200.
30. Max Pain for Nifty is at 11400 and Max Pain for Bank Nifty is at 29100.