Pre Market Report, July 3, 2019 | Stocks and Commodities

July 3, 2019
Time: 8.10 am

Pre Market Report:

1. Yesterday our markets opened positive but came under severe selling pressure.
2. Bank Nifty fell more than 300 points from previous days close.
3. The main reason for selling was the lower GST collection.
4. Then buying came at lower levels.
5. Then short covering set in.
6. Surprisingly Nifty shot up about 80 points while US Dow futures was falling about 80 points.
7. We have decided not to follow the Global cues for the last many weeks.
8. When our markets closed, Dow futures were negative.
9. But when markets opened there, Dow recovered all the losses and closed in Green.
10. Crude fell nearly 4% yesterday night.
11. Gold has hit fresh 52 week high.
12. Luckily Rupee is trading strong below 69.
13. Falling Crude prices is a good news for our markets.
14. Particularly OMCs will do very well today.
15. Yesterday FIIs have sold in Cash market for Rs  512 crores.
16. However DIIs have bought for Rs 141 crores.
17. People are comfortable in selling above 11900 and buying below 11700.
18. That is why this range 11620-12040 holds for a long time.
19. We need some trigger, some big gap up or gap down, to scare the traders, short or long.
20. But that is not going to happen anytime soon.
21. This Thursday is a holiday for US markets, Friday is the budget day.
22. Though budget is a big event, it comes during the market hours, so no big gap up or gap down.
23. That is one of the reasons why India VIX is hovering at lower levels.
24. Markets may make a big move only if May 23 range is broken.
25. It tried to break on the higher side twice but never tried to break the lower side.
26. So probability of breaking higher is more in the coming weeks.
27. IT sector was the first one to recover in yesterday's trade.
28. Two index heavy weights, TCS and Infy, coming out with results next week.
29. That will set the trend for markets.
30. I have July Nifty 12000 short straddle and August 12000 short straddle both done around Rs 500.
31. So as long as markets are trading between 11500 and 12500, I will be making good profits.
32. Even I have Nifty December 12000 straddle done at average price of Rs 1500 (with some trading)
33. It seems that I am becoming an expert in short straddles.
34. I do have Bank Nifty July 31000 short straddle. 
35. I also sold 30800, 30500PE in weekly options.
36. I bought 11950CE and sold 2X12000CE in weely options.
37. I also sold 11750PE and 11700PE in weekly options.
38. PFC is entering to large cap space as per one report, that is really a good news as I have that stock.
39. Expect a volatile market as we are trading near the resistance. Nifty 12000CE has the highest OI in weekly options.
40. Nifty future may trade between 11880 and 12000.