June 10, 2019
Time: 8.20 am
Pre Market Report:
Time: 8.20 am
Pre Market Report:
- On Friday, US jobs data came very bad as expected.
- But markets shot up as rate cut hope increases.
- Asian markets are positive.
- First markets fell when Nirmala Sitaraman name announced as Finance Minister.
- Next markets fell on DHFL news.
- But markets are down not out.
- Every fall is being bought.
- One good thing is that Nifty is not moving far away from 12000 on either side benefiting Nifty 12000 short straddlers.
- I mention this as I am holding lot of straddles.
- SGX Nifty is trading about 70 points higher.
- That is a decent gap up.
- RBI circular on 1 day default may be one good reason.
- So Bank Nifty may out perform.
- Bank Nifty was hugely volatile on Friday.
- I have hedged my long positions by buying Nifty 12000PE and financed that buy by selling 4X11500PE.
- So all my longs are protected from 12000 to 11500.
- Reliance has been under performing.
- US-Mexico deal is one reason why Global markets are good.
- Not everything is positive for us, despite recovery in the market, FIIs keep selling in Cash market.
- Brent Crude is rising above US$63.
- China Economic data was better than expected.
- As of now it looks like our market is in consolidation mode between 11800 and 12100.
- I have sold 12200CE and 12300CE as hedge for my folio.
- This is on top of individual stock options.
- This week there are no major market moving news except IIP data and inflation data.
- Auto stocks seems to be stabilising, one can look at Hero Moto Corp for long term investment.
- Planning to sell more 11500PE, if markets trade firmly above 11920.
- Nifty may face resistance at 12000.
- Support may come at yesterday's close.
- Enjoy the range bound market with straddles and strangle.
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