Pre Market Report, July 30, 2019 | Stocks and Commodities

July 30, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed mixed.
2. Asian markets are positive.
3. SGX Nifty is trading alightly higher.
4. In the last few weeks whenever markets opened higher, selling came immediately.
5. Yesterday was no different.
6. Bank Nifty hit high within few minutes and and selling came immediately and Bank Nifty fell almost 500 points.
7. That is despite very good show by ICICI Bank.
8. Nifty fell nearly 160 points from intraday high to intraday low.
9. From budget day high of 12000 to yesterday's low of 11150, Nifty future has fallen 850 points in last few weeks.
10. But there are no signs of stability.
11. Yesterday major selling came from Auto stocks due to registration fee hike.
12. Reliance is just refusing to turnaround.
13. HDFC Twins, ITC and other heavy weights brought down the market.
14. If not for ICICI Bank, even Bank Nifty would have collapsed.
15. Nifty's low yesterday was just 10 to 20 points away from 200DMA.
16. More than 400 stocks hit 52 week low.
17. Usually markets bottom out when this happens.
18. Let us see what happens this time.
19. Yesterday's move in ICICI Bank was just short covering.
20. We need to see how this stock moves today. I am long in my portfolio and sold 440CE.
21. I have sold lot of short straddles at 11300 in September series for about Rs 480 per straddle.
22. Yesterday I sold lot of 11350CE and 11400CE in weekly options.
23. In Bank Nifty I sold 29800CE and 30000CE.
24. Today I am planning to sell some 11000 straddle and 11500 straddle in December series.
25. Unless Govt makes some concessions, there is no hope of significant rise in markets.
26. December straddle trading around Rs 850, giving a range of 10150 and 11850.
27. FIIs have sold 14000 crores worth of shares since budget.
28. Now Bank Nifty looking better than Nifty while it was opposite just few days before.
29. After ICICI Bank, Axis Bank will be in focus ahead of its results today.
30. Yesterday in one account I simply shorted ICICI Bank, Axis Bank, SBI, YES Bank, IndusInd Bank, Kotak Bank, India Bulls Housing and sold ATM Put option.
31. Also shorted Nifty September future and sold 11300PE.
32. Without short positions, it will be difficult to manage this kind of markets.
33. August is a 5 week series, we have a lot more corporate results, Fed policy, RBI policy and many more data. Markets are likely to go all over places.
34. That is why now a days I find traders trading more in weekly options than monthly options.
35. One month becomes too difficult to predict the market movements.
36. Today's candle should be inside candle of yesterday's candle.
37. Means today market is likely to trade within yesterday's range of 11250-11325.