Pre Market Report, August 21, 2019 | Stocks and Commodities

August 21, 2019
Time: 8 am

Pre Market Report:

1. Yesterday our markets were highly volatile.
2. One more scam broke out CG Power.
3. Scams and Bankruptcies are new normal now.
4. YES Bank crashed once again as it holds CG power shares.
5. FIIs keep selling since budget day.
6. DIIs coming and supporting markets whenever there is a big fall.
7. That creates huge volatility.
8. Selling comes in index heavyweights like HDFC, HDFC Bank, Kotak Bank, Reliance, etc.
9. US markets closed lower.
10. ut Asian markets are recovering from lows.
11. And US futures are trying to stay in Green.
12. SGX Nifty traded below 11000, now trading slightly above 11000.
13. Markets are likely to be highly volatile, as usual.
14. But Nifty has been trading between 10800 and 11200 for most part of this series.
15. As long as there is no stimulus announcement, Nifty is likely to trade in this range only.
16. FIIs keep selling since budget day, only 2 days, due to HDFC AMC share sale and MGL share sale days, FII was on buy side.
17. In those two days also, FIIs are net sellers, as the sellers of HDFC AMC and MGL are classified as FDI.
18. Otherwise for last one and half months, FIIs keep selling.
19. Yesterday some short covering was seen, Nifty future gained some premium while it was trading at discount the day before.
20. So we can expect some short covering if Nifty future trades below 11000.
21. Rupee keeps depreciating, worst performing Asian currency in the last one month.
22. So IT stocks are doing well while Banking stocks are falling.
23. Markets are likely to be in range bound this week.
24. If any stimulus announcement, it may come during the weekend.
25. On any intraday rise of more than 100 point in Nifty, consider selling October 11200CE.
26. On any fall of more than 100 points, consider squaring up positions.
27. Low risk takers, do Nifty 11000 short straddle in weekly and long straddle in monthly.
28. Had you done this day before yesterday, you would have made Rs 20 profit yesterday as there was a gain of Rs 40 in short straddle and loss of Rs 20 in long straddle.
29. Reliance is showing some weakness after huge gap up after AGM.
30. I sold 11200CE day before yesterday around closing time at rs 21, yesterday closed at Rs 10.
31. Today around closing time, will sell more 11200CE if Nifty future closes below 11100.
32. Bank Nifty facing stiff resistance around 28500.
33. So will look to sell 28500CE in Bank Nifty also.
34. Once again expect a high volatile market.
35. Nifty future may trade between 10980 and 11120.