Pre Market Report, June 17, 2019 | Stocks and Commodities

June 17, 2019
Time: 8.25 am

Pre Market Report:

1. On Friday, markets fell in the last half an hour, due to knee jerk reaction to tariff hike by India for US products.
2. But there was no reaction from US over the week end.
3. Hong Kong decided to suspend the "Extradition" rule which is a big positive.
4. Hong Kong market is up by over 300 points.
5. But the protest continues in Hong Kong as people are not happy with "suspension", they want complete "withdrawal"
6. SGX Nifty traded below 11800 on Friday night, today opened below 11800 but once Hong Kong market opened in Green, SGX Nifty recovered and now trading around 11830.
7. I am holding 12000 straddle at Rs 400 which I decided to close if Nifty future breaks 11800.
8. Today I am planning to sell 12000 or 12100CE as additional hedge if markets open in Green.
9. Then if Nifty future breaks 11800, I can close all positions so that damage will be slightly less.
10. Though markets fell due to knee jerk reaction, there was no meaningful selling by Institutions.
11. FIIs sold but DIIs bought for more than what FIIs sold.
12. In F&O also, there was no shorting.
13. So markets may once again go for consolidation.
14. In this series we are already under performing other markets.
15. Three major central banks meeting this week, US Fed meeting is very important.
16. Even if Fed is not cutting the rates, they will give indication of rate cut in the next meeting.
17. So even if Nifty breaks 11800, the fall may not be very big.
18. Nifty fell for 3 days and India VIX was up first time on Friday.
19. Today's closing is very important, if Nifty closes in negative and India VIX moves higher, then it is time to lighten the positions on long side.
20. I shorted TCS (July) Futures at 2275 and sold 2X2200PE in this series at Rs 13X2.
21. Looking to add some more short positions if Nifty future breaks 11800 on downside.
22. Crude is slightly higher and European and US futures are slightly higher.
23. Even some strong stock started correcting on Friday like Axis bank, ICICI Bank, Kotak Bank, etc.
24. I have sold call options aggressively for my Cash market holdings.
25. Nifty future may trade between 11760 and 11900.
26. Bank Nifty looks more weaker than Nifty.