Pre Market Report, June 10, 2019 | Stocks and Commodities

June 10, 2019
Time: 8.20 am

Pre Market Report:

1. On Friday, US jobs data came very bad as expected.
2. But markets shot up as rate cut hope increases.
3. Asian markets are positive.
4. First markets fell when Nirmala Sitaraman name announced as Finance Minister.
5. Next markets fell on DHFL news.
6. But markets are down not out.
7. Every fall is being bought.
8. One good thing is that Nifty is not moving far away from 12000 on either side benefiting Nifty 12000 short straddlers.
9. I mention this as I am holding lot of straddles.
10. SGX Nifty is trading about 70 points higher.
11. That is a decent gap up.
12. RBI circular on 1 day default may be one good reason.
13. So Bank Nifty may out perform.
14. Bank Nifty was hugely volatile on Friday.
15. I have hedged my long positions by buying Nifty 12000PE and financed that buy by selling 4X11500PE.
16. So all my longs are protected from 12000 to 11500.
17. Reliance has been under performing.
18. US-Mexico deal is one reason why Global markets are good.
19. Not everything is positive for us, despite recovery in the market, FIIs keep selling in Cash market.
20. Brent Crude is rising above US$63.
21. China Economic data was better than expected.
22. As of now it looks like our market is in consolidation mode between 11800 and 12100.
23. I have sold 12200CE and 12300CE as hedge for my folio.
24. This is on top of individual stock options.
25. This week there are no major market moving news except IIP data and inflation data.
26. Auto stocks seems to be stabilising, one can look at Hero Moto Corp for long term investment.
27. Planning to sell more 11500PE, if markets trade firmly above 11920.
28. Nifty may face resistance at 12000.
29. Support may come at yesterday's close.
30. Enjoy the range bound market with straddles and strangle.