Pre Market Report, June 6, 2019 | Stocks and Commodities

June 6, 2019
Time: 8.25 am

Pre Market Report:

1. Dow shot up by more than 700 points in last two days.
2. But SGX Nifty is down.
3. DHFL news is playing spoilsport.
4. DHFL defaulted on interest payment.
5. That too on a large scale.
6. Even Axis Bank and ICICI Bank are affected.
7. So DHFL, ICICI Bank, Axis Bank will be in focus due to this default.
8. But RBI policy will make shorting also difficult.
9. Generally it is expected to cut rates by 25 basis point.
10. On Tuesday both Nifty future and Bank Nifty future gained the premium over spot.
11. Crude is struggling around $60 and that is good for us.
12. Bank Nifty 31000PE and 32000CE have huge open interest, so Bank Nifty is likely to settle between these two figures.
13. Max Pain for Bank Nifty is at 31600.
14. Though markets may be highly volatile, we can expect Bank Nifty to settle between 31400 and 31800.
15. Nifty has huge OI at 12000 and 11900 among Puts and 12100 and 12200 among Calls.
16. So people think Nifty is not going make any big move.
17. The focus is on Bank Nifty due to RBI policy.
18. On Tuesday both FIIs and DIIs were net sellers in Cash market.
19. So markets may struggle to move higher.
20. Nifty 12000 straddle is likely to give good profits this month.
21. As long as Nifty trades in the range 11800-12200, it will be a sideways market.
22. The momentum is not there when Nifty crosses all time high this time.
23. One good thing about RBI policy is that the rate decision comes at 11.45 am.
24. That is a big relief for expiry day traders.
25. I am holding lot of 11900, 11850, 11800PEs in Nifty.
26. In Bank Nifty I have sold 30800 and below Puts.
27. Collateral damage will be felt in other Housing Finance companies due to DHFL.
28. So be ready for a roller coaster ride today.
29. Range is difficult to predict due to RBI policy.
30. Still I feel Nifty future will trade between 11980 and 12120.