Pre Market Report, June 24. 2019 | Stocks and Commodities

June 24. 2019
Time: 8.20 am

Pre Market Report:

1. US markets closed slightly negative on Friday.
2. Asian markets are mixed.
3. Nifty shot up on Thursday.
4. But came under severe selling pressure on Friday.
5. There were two major issues.
6. One Iran shot down US drone triggering a possibility of Geo political tension.
7. Second the progress of monsoon.
8. But over the weekend, there was no escalation in Iran issue.
9. Progress of the monsoon has been good over the weekend.
10. Crude is trading around US$65.
11. Reliance has been a laggard in this series.
12. Mid cap and small cap index are doing very badly this month.
13. This is happening after stable Govt at the centre is really puzzling.
14. Nifty 11700PE has the highest OI among Puts.
15. That could be a good support, but we are just 25 points away from 11700.
16. Nifty 12000CE has highest OI among Calls and that will be a good resistance.
17. Since we closed at 11724 on Friday, we have only 4 more trading sessions, Nifty is finding 11850 as resistance, the probability of Nifty moving towards 12000 is very low.
18. I expect Nifty to trade between 11700 and 11900 for the rest of this series.
19. I am planning to close all the trades in June and shift my positions to July or August.
20. India VIX is likely to move higher ahead of budget.
21. 34 stocks will be out of F&O this month and there has been heavy shorting in these stocks.
22. They may see some short covering, if not in Cash market, at least in Futures market.
23. For eg., Jet closed at Rs 64 in Cash and at Rs 49 in Futures.
24. In the next four days, they both have to merge.
25. Jet made a low of Rs 37.80 and high of Rs 81.40, which is almost 300% intraday move.
26. We can see such moves in the next four days as they get out of F&O.
27. RBI Deputy Governor resignation issue is also there today.
28. But it may be non event at this point of time.
29. I am planning to buy 11700PE in July series if Nifty stays weak.
30. Will finance the buy by selling 2X11400.
31. The next support must come around 11500.
32. Nifty future may trade between 11700 and 11820.
33. But expect some huge volatility.