Pre Market Report, June 13, 2019 | Stocks and Commodities

June 13, 2019
Time: 7.50 am

Pre Market Report:

1. US markets closed marginally negative.
2. Most Asian markets are negative.
3. Hong Kong index fell more than 1000 points in 2 days due to extradition protests.
4. But we always preempt the world markets and we have fallen yesterday.
5. All OI data was pointing to bullishness yesterday but markets fell hunting the stop loss of all writers.
6. Now the sellers have sold huge amount of call options.
7. I have sold 31300, 31400CE in Bank Nifty.
8. Let us see whether markets do SL hunting of call writers today.
9. I have also sold 30500PE in Bank Nifty.
10. In Nifty I sold 11800PE and 12000CE as I am expecting Nifty to expire in this range today.
11. Both 11800PE and 12000CE were trading around Rs 5 yesterday at closing.
12. SGX Nifty is trading slightly negative, so at open itself both will give good profit.
13. Will keep entry as SL on both sides, whenever one stop loss is hit, will close the other one also.
14. Same thing will go for Bank Nifty 30500PE and 32300CE.
15. Yesterday Reliance supported the markets, otherwise it would have fallen even more.
16. Kotak Bank is looking bearish.
17. Expiry day, people always play with HDFC bank.
18. We have to see how these two stocks perform today.
19. While writing this blog, US futures fell suddenly and hence SGX Nifty.
20. So we have to wait to see if there is any breaking news.
21. Hang Seng index fell another 100 points in the last few minutes, taking total fall to more than 1100 points in last two days.
22. IIP and Inflation data came as expected.
23. We have to see the effect of these two data today, I think that becomes a non event now.
24. Major worry is the FII selling.
25. While they were net buyers in the last few days, yesterday they have sold for more than Rs 1000 crore in Cash market.
26. That is shock for bulls and that was already reflected in yesterday's market.
27. This has happened when HDFC bank hit all time high in US.
28. Markets are getting more and more narrower.
29. India VIX keep falling.
30. Huge puts are written at 11800 and huge calls are written at 12000.
31. Now more and more people are thinking that Nifty will trade between 11800 and 12000.
32. Breaking of any of these levels, the writers will have to run for cover.
33. That will accelerate the move in that direction.
34. Yesterday first time in the recent past, higher high and higher low pattern was broken.
35. That is a bearish sign.
36.  Will be happy, as usual if markets are volatile within a range.
37. If yesterday's low is broken, then time to take some short positions.
38. Yesterday I have already taken some short positions, short July Futures and sold 12000PE at Rs 250. 
39. On downside, profit of Rs 200 per share, on upside break even is 12200.
40. Nifty future may trade between 11850 and 11980.