Pre Market Report, June 25, 2019 | Stocks and Commodities

June 25, 2019
Time: 8.10 am

Pre Market Report:

1. US markets closed mixed after rising in the first half of the session.
2. China announced that its President will be meeting Trump at the sidelines of G20 meet.
3. But markets are not expecting any meaningful out come out of this meeting.
4. That is why initial euphoria in US markets were sold into.
5. Forget about Global markets, we are struggling with our own problems.
6. Auto sales keep going down.
7. Pharma sector doing very badly.
8. In the last one or two weeks, Reliance has been dragging the markets.
9. In this series, Reliance has fallen from 1374 to 1257.
10. That is nearly 10% fall, that too coming from index heavy weight.
11. Kotak Bank is also looking very weak.
12. Axis Bank, though not a heavy weight, keeps coming down as LIC keep selling.
13. LIC has sold nearly 2% stake in Axis Bank in open market.
14. But not everything is negative for today's market.
15. After a long time, both FIIs hand DIIs were net buyers yesterday.
16. Crude is not spiking beyond US$65.
17. If there is any short covering in Reliance, which looks oversold, markets may recover some lost ground.
18. SGX Nifty is slightly higher.
19. But we have not been respecting SGX Nifty for the last many weeks.
20. Monsoon is deficient by 37% which is a bad news.
21. Only 3 more days for 34 stocks to get out of F&O and volatility may be very high in these stocks.
22. I closed most of my June month positions and moved to July series.
23. In July I have Bank Nifty 31000 short straddle and Nifty 12000 short straddle and Nifty Put ratio spread, +1X11800PE, -2X11500PE.
24. In June series, I sold 11850CE, 11900CE just for expiry.
25. Since 11850 is acting as a huge resistance, time decay will be very fast, I am looking to make some money.
26. Yesterday I sold 11850CE at Rs 23 and 11900CE at Rs 16, both are in profit now.
27. I can put SL at entry level.
28. In many series, Nifty tends to make big moves in the last 3 days.
29. Many series I have observed 200 to 250 points move in last 3 days in Nifty.
30. So if you are trading, trade with strict SL.
31. Except one day, June 20, market breath has been negative through out this series.
32. This could be the worst immediate month after a stable government formation in India History.
33. Nearly 70% of the NSE stocks are below 200DMA, as per moneycontrol.com
34. Nearly 70% of the stocks trading at a price lower than the price when Nifty was at 10000.
35. This shows the bearishness of the broader market.
36. TCS near all time high, I am holding some short positions.
37. Gold price at 6 year high is a concern for the world markets.
38. SBI is the only Banking stock that looks bullish.
39. Every day Nifty moves about 100 points and Bank Nifty moves about 300 points, let us see what happens today.
40. Nifty future should take support at 11680 and resistance may come at 11800.