Pre Market Report, June 18, 2019 | Stocks and Commodities

June 18, 2019
Time: 8.25 am

Pre Market Report:

1. US markets closed slightly higher as FAANG stocks out performed.
2. Asian markets are mostly flat with positive bias.
3. Today and Tomorrow Fed meeting is there.
4. So markets may be nervous and will not make big moves.
5. Crude prices are moving towards US$60 again.
6. SGX Nifty is higher slightly by 10, 15 points.
7. Yesterday's fall of 150 points in Nifty was a big surprise.
8. One reason, technical, the range was broken, short sellers have become active.
9. We are getting bad news on Macro front.
10. Monsoon rains are 43% below normal in June.
11. US tariff hike, everyone is waiting for US response.
12. FIIs have sold for Rs 331 crores in Cash market while DIIs have bought for Rs 1258 crores.
13. Yet Nifty fell 150 points.
14. The main dragger was Reliance.
15. It has fallen 4% in 3 days.
16. Kotak Bank, Axis Bank also looks weak.
17. If HDFC Bank start falling, then Bank Nifty will break 30000.
18. Due to Fed policy on Wednesday night, we will be reacting on Thursday, difficult to sell call options aggressively in weekly options.
19. I sold Nifty 12000 Calls at the opening yesterday and later became more bearish and sold 11900 Call options.
20. I made Rs 23 loss in July 12000 short straddle but that loss was compensated by the profit in 12000CE, 11900CE.
21. Nifty has fallen 150 points, yet December Nifty 12000 short straddle is in profit.
22. Yesterday about 350 stocks hit 52 week low.
23. That shows nothing is good in broader markets.
24. In fact, entire June series, market breadth has been negative.
25. So we may have to forget about 12200, at least until budget.
26. Surprisingly YES bank closed in Green when the entire markets fell.
27. When bluest of blue chips start falling, we are close to the bottom.
28. One can consider selling 11500PE is July series, if willing to enter markets at 11400.
29. Markets are likely to be highly volatile.
30. Nifty future may take support at 11620.