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

July 25, 2019
Time: 8.15 am

Pre Market Report:

1. Yesterday markets opened with a positive note.
2. Within few minutes huge selling pressure came and Nifty fell more than 100 points intraday and Bank Nifty fell more than 300 points.
3. But markets were highly volatile.
4. PSU Banks fell.
5. Bajaj Twins fell ahead of reslts.
6. Bajaj Finance has fallen from 3650 to 3160, yesterday fell about 4%, today it will declare results during the market hours.
7. If results are good, there may be some short covering as it closed at the lowest point of the series yesterday.
8. HDFC Bank stabilised but other banks like ICICI Bank, AXIS Bank, IndusInd Bank fell.
9. Reliance also met with selling pressure.
10. I has some long positions in Sun TV, exited yesterday, for the time being I want to keep away from shares that have less than 35% public share holding.
11. Many large cap blue chip companies in Auto sector lost 50% from the peak like Eicher Motors, Maruti, Tata Motors, Ashok Leyland, etc. 
12. So no plan to touch Auto stocks also.
13. PSU Banks will be in focus ahead of Bank of Baroda results today evening.
14. Tata Motors, Bajaj Finance, Bajaj Finserv, Bank Baroda, Ambuja Cements, Biocon are the companies that are set to declare results today.
15. There was huge unwinding of 11300PE as Nifty broke 11300 and fell significantly.
16. Nifty 11300CE added huge open interest yesterdy.
17. During high volatile time, these things may not work.
18. Now SGX Nifty is trading close to 11300, if there is any spike, then these positions will come into trouble.
19. FIIs have sold for Rs 1400 crores and DIIs have bought for Rs 2140 crores.
20. DIIs are determined to make sure markets do not collapse, but Nifty has already fallen more than 700 points from budget day high.
21. Bank Nifty has huge OI from 29200 to 29500CE.
22. Yesterday OI added in 29000 to 29300CE.
23. But things are not going to be easy, markets will be making violent moves on both sides.
24. If Bank Nifty opens higher, one can try Call calendar. If Bank Nifty opens around 29000, then sell 29000CE in this week and buy 29000CE in next week.
25. Since VIX is low, next week options should be trading relatively lower price.
26. This strategy will give maximum profit, if markets move up and down violently, but close around 29000.
27. Selling naked, then we have to sell 29300CE, Bank Nifty is not likely to reach this level before 3 pm.
28. As a policy, do not keep positions after 3 pm, in case if you wish to keep, put Stop Loss.
29. Keeping positions after 3 pm without stop loss is very dangerous.
30. Since Nifty 11300CE has huge OI, in case if markets move higher, these sellers will be in trouble and will propel the markets even higher.
31. So today's market movement will be vey much unpredicatbale and violent.
32. This is a showdown between FIIs and DIIs, we should not get killed in cross fire.
33. I will like to do very carefully today, do not mind even if I make little profit.
34. Bought Reliance at 160 and sold 1260CE at Rs 10 yesterday, wll make some profit as long as Reliance is not falling more than Rs 10.
35. Fingers crossed regarding the range.
36. My gt feel is that yesterday's low will be defended.