Pre Market Report, July 29, 2019 | Stocks and Commodities

July 29, 2019
Time: 8.10 am

Pre Market Report:

1. US markets closed at another record high on Friday.
2. But Asian markets are down.
3. SGX Nifty is down by 10, 15 points.
4. After falling for many days, our markets stabilised on Friday.
5. Bank Nifty out performed Nifty on Friday.
6. Surprisingly Reliance dragged the market.
7. Reliance is falling without any reason.
8. ICICI Bank declared good results over the weekend, that is likely to trade higher and support Bank Nifty.
9. Registration charges increased for autos and that is a very bad news for auto stocks.
10. Auto index is already near 52 week low and many blue chip stocks have fallen over 50%.
11. Subramanian Swamy's allegation against India Bulls Housing is another headache.
12. Last time a milkman bought 3 shares and made the stock to move 30%.
13. SEBI is only busy in driving out retail people from the market by keep increasing margins and by other measures.
14. DrReddy will be in focus ahead of its results.
15. FIIs have resumed selling again on Friday as I mentioned.
16. FIIs have sold for Rs 1500 crores of shares in Cash market on Friday.
17. Overall market set up looks weak only.
18. August is a 5 week series, lot of corporate results are due, yet the VIX is very low.
19. And hence option premiums are also very low.
20. US-China trade talks begin today though with pessimism on both sides.
21. Fed meeting is an important event this week.
22. August series is expected to trade between 11000 and 11700.
23. Due to very low volatility, finding a good strategy is difficult.
24. I am just doing short straddle in September series at 11300.
25. I expect India VIX to rise in the next one to two weeks.
26. Since I am not taking a bullish view, I also did a put ratio spread. 
27. +1X11300PE and -2X11000PE in September series.
28. Will not make any money if markets move significantly higher or significantly lower.
29. Finance Secretary transfer, FM interview in India Express point towards appeasing FIIs.
30. But all these are subject to intrepretation.
31. I really do not know what Govt can do to turn the FIIs sentiment.
32. Last time also, after falling from 12000 to 11500, markets stabilised, moved higher ofr 4 or 5 days, only to wipe out entire gains in just one day.
33. Now same thing, Nifty fell from 11700 to 11200, stabilising, after rising for few days, markets can fall jut in one day.
34. So it is time to be cautious, there are no positive signs except rate cut.
35. Nifty future may trade between 11260 and 11380.