Pre Market Report, June 21, 2019 | Stocks and Commodities

June 21, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed higher.
2. But Asian markets are in profit booking mode.
3. Yet this week is one of the best week for most markets.
4. Nifty future had been trading between 11800 and 12100 for first two weeks of June.
5. Then broke 11800 and then huge volatility came.
6. But yesterday short covering took Nifty future comfortably above 11800.
7. So once again we may go to the trading range 11800 to 12100.
8. That may go on until budget on July 5.
9. Then budget outcome may decide the course of the market.
10. Iran shot down one US drone and crude prices are up.
11. That is a negative news for India.
12. In addition, despite such a huge rally yesterday, FIIs have sold for more than 400 crores.
13. After 14 days of negative market breadth, yesterday market breadth was positive. (Advance is more than Declines).
14. All beaten down stocks shot up, Jet shot up by 120%.
15. Maruti shot up 300 points from intraday low, many other auto stocks also shot up.
16. Yesterday's rally was just a short covering rally, the rally may not continue.
17. SGX Nifty shot up by 70 points yesterday night but now it is trading almost flat.
18. My Nifty July 12000 straddles are doing well.
19. Reliance has been a laggard in this move.
20. Reliance is struggling to cross 1300.
21. I hold lot of shares in Reliance.
22. Bought 1300PE and sold 2X1240PE in July. If it falls below 1240, I am prepared to buy more.
23. If it moves higher, then there is nothing to lose.
24. If it settles between 1300 and 1240, then there will be some profit in this trade which will compensate the portfolio loss.
25. For portfolio, sold Call options 1460, 1440, 1400, 1380, 1360. Now closed all of them and sold 1320CE, 1340CE.
26. Remember I suggested selling 11500PE in July, that trade is doing well.
27. One good news is that SEBI is looking into margin system in India.
28. If they can reduce the margins to international standard of maximum risk based margin, that will be the best thing that can happen to people like us.
29. I am expecting some consolidation between 11800 and 12000 for the next few days.
30. Now 11700PE has the highest OI among Puts and 12000CE has the highest OI among Calls.
31. Today expect consolidation between 11800 and 11900.