June 19, 2019
Time: 8.25 am
Pre arket Report:
Time: 8.25 am
Pre arket Report:
- Yesterday we had a high volatile session.
- At the end of the day, Nifty closed about 20 points higher.
- Mario Draghi said he will go for some stimulus if inflation is not picking up.
- European and US markets shot up after this news.
- Later Trump announced that he will be meeting China President at G20.
- SGX Nifty is trading about 50 to 60 points higher.
- Problem stocks are going for free fall like Jet, Rel Infra, PC Jeweller, DHFL, etc.
- Nifty and Bank Nifty both tested 50 DMA and reversed.
- Reversed with huge volatility.
- Usually that is the sign of bottom out.
- With gap up today and Fed policy tonight, yesterday's low should be the low for this series.
- Let us see how markets obey these past rules.
- However there is nothing to cheer about this gap up.
- Remember we have not been following Global cues for the last few days and today gap up due to Global cues will sustain or not? It is a million dollar question.
- Surely weak bears will be thrown out.
- Reliance is still looking very weak.
- Kotak Bank also looking very weak.
- These index heavy weights preventing markets moving higher.
- Since the Global cues are so good, naturally Crude prices will firm up.
- So that is a negative for us.
- ICICI Bank has shown remarkable resilience during market turmoil.
- Markets will be nervous ahead of Fed policy announcement tonight.
- Last one hour of trading is very important today to decide the direction.
- I have sold 11900 and 12000CEs and hope they will be safe.
- Nifty may face resistance at 11850 which is 20DMA.
- Bank Nifty I have sold 31000CE in weekly options.
- Markets reversing and stabilising is good for my positions, Nifty 12000 short straddle and bank Nifty 31000 short straddle.
- Expect another day of volatile movement.
- Yesterday I sold 29500PE in monthly Bank Nifty at Rs 52. I do not expect Bank Nifty to close below 29500 this month.
- Nifty future may trade between 11700 and 11820.
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