Pre Market Report, August 2, 2019 | Stocks and Commodities

August 2, 2019
Time: 8.15 am

Pre Market Report:

1. US markets opened higher and trading steadily.
2. Then came TT (Trump Tweet) announcing 10% hike in tariff for China.
3. Dow fell 6If yesterday's low is broken, then there will be more panic.
4. 00 points intraday.
5. All Asian markets are down.
6. SGX Nifty is down about 60 points.
7. Hong Kong is down by more than 2%.
8. China is down by about 1.5%.
9. Now the focus will turn to SBI, ITC and HDFC results.
10. Both results are expected during market hours.
11. Markets are highly volatile for the last few days.
12. In last two days DIIs have pumped in more than Rs 3000 crores, yet markets are negative.
13. Pessimism seems to be creeping in.
14. Though index has fallen less than 10% from all time high, most auto stocks have fallen more than 50%.
15. Govt push towards EV is back firing.
16. Yesterday Reliance was up after falling for 7 consecutive days.
17. There are no hopes for market recovery unless there is some news from Govt.
18. Even I am thinking of exiting my portfolio slowly.
19. Already started selling in small quantities.
20. I remember in 2008, we corrected significantly before Global markets started correcting.
21. Then we fell even more.
22. We have already fallen about 1000 points.
23. Now Global markets are starting.
24. Despite so much negativity in the Economy, yet Govt is silent.
25. Now even IT stocks started falling.
26. I am selling Call options aggressively at a distance.
27. In account, I sold September series 11200, 11300, 11400, 11500, 11600, 11700, 11800CEs.
28. Also selling stock futures and selling Put options.
29. I have short positins in HDFC Bank, Kotak Bank, Axis Bank, IndusInd Bank, YES Bank, SBI,  India Bulls Housing.
30. Planning to add HDFC and Reliance today.
31. In addition, short in Bank Nifty futures and Nifty futures and sold put options.
32. Today planning to add more shorts in Nifty and Bank Nifty futures.
33. Nifty October 11000CE trading around Rs 350. Good idea to short. In case if Nifty spot closes above 11000, then can sell 11000PE to convert it into straddle.
34. Bank Nifty futures trading at a significant premium.
35. So one can sell September future and sell 28500PE.
36. In case if market reverses (though that probability is very low), you should know how to manage.
37. DSP taking DHFL to court may add fuel to fire.
38. With the developments in the last one month, I am really worried about long term investors.
39. We have "lost decade" for PSU stocks which may extend to overall market.
40. As long as yesterday's low is not broken, there may be mild recovery if SBI and HDFC results are good.
41. Yesterday's high is not likely to be taken out given the bad Global cues.
42. So Nifty may trade broadly between 10880 and 11030 (yesterday's close, not yesterday's high)