June 11, 2019, June 11, 2019 | Stocks and Commodities

June 11, 2019
Time: 8.10 am

June 11, 2019:

1. Yesterday Bank Nifty was very high volatile.
2. Bank Nifty was up 300 points in the morning, then fell 500 points and then again shot up 200 points.
3. After making 1000 point move, Bank Nifty closed almost flat.
4. Bank Nifty future premium has come to discount to spot.
5. Global markets are doing extremely well in the last one week.
6. But we have been under performing Global markets.
7. Nifty is struggling around 12000.
8. PSU Banks fell, Bank of Baroda corrected 15% from May 23 high.
9. Reliance has been under performing.
10. Yesterday FMCG and IT stocks supported the markets.
11. ADAG Group stocks fell, today it looks like India Bull Housing Finance.
12. Markets are punishing the companies even if there is any small doubt.
13. Yesterday both FIIs and DIIs have bought in Cash market, though for little amount.
14. Crude prices are down, now trading around US$62.
15. SGX Nifty is higher by about 20 points.
16. Markets are highly volatile but within a small range 11800-12100.
17. So one can consider longs above 12100 and short below 11800.
18. Until then straddle and strangles will give better returns.
19. I sold 11500PE heavily, in the last few days it has fallen from Rs 50 to around Rs 28.
20. On the higher side, I sold 12200CE and 12300CE.
21. Nifty 12000 straddle sold at Rs 400, now trading around Rs 250. I am planning to close the positions if it falls below Rs 200 and shift to July or August straddle.
22. Sometimes markets breakout when nobody is expecting.
23. There is huge short is required for the market to move sharply higher.
24. Now that shorts are getting added in this volatility.
25. We may need a trigger for that break out, it may come from IIP and inflation data tomorrow evening.
26. Nifty future may trade between 11880 and 12020.
27. One can consider selling 11500PE if Nifty future falls below 11900 and can sell 12300CE if it trades above 12000.
28. Bank Nifty has been struggling, still I sold 30000PE as I feel Bank Nifty will take good support around that level.
29. In weekly Bank Nifty options, I have sold 30000PE, 30500PE, 31500CE.
30. Yesterday also did 11900 short straddle.