Pre Market Report, September 11, 2019 | Stocks and Commodities

September 11, 2019
Time: 7.45 am

Pre Market Report:

1. Yesterday our markets closed while other markets were open.
2. China factory data was not good.
3. So SGX Nifty fell 65 points.
4. Later China scrapped limit on FIIs to buy shares in China.
5. That lifted sentiment.
6. Then SGX Nifty recovered all the losses.
7. Last Monday Nifty fell about 250 points after GDP shocker.
8. Nifty is yet to recover that one day loss.
9. Markets are met with sudden and huge selling pressure.
10. On Monday morning 9.15 am also the selling came severely but then recovered later.
11. There is no meaningful measure comes from Govt.
12. Now they have gone from "Discussion, feedback" stage to "Conscious that we have to respond" stage.
13. One consolation is that FIIs have sold only for Rs 188 crores in Cash market.
14. This is after selling more than Rs 1000 crore everyday for last few weeks.
15. We have to wait and see whether the selling subsides or they are just giving one or two days rest.
16. At some point selling exhaustion will happen and markets will recover at least 3 to 3%.
17. Waiting for that opportunity to exit longs.
18. Until then keep selling Call options.
19. Pay TM buying YES Bank stake from Rana Kapoor may trigger some short covering rally and that may help Bank Nifty to out perform.
20. I sold 26500PE, 26800PE, 27000PE, 28000CE in weekly options. Hope everything goes to zero by tomorrow afternoon.
21. Nifty has been facing stiff resistance at 11150, so sold 11150CE for tomorrow expiry.
22. On the downside 10800 seems to be a good support.
23. Last Friday sold 10700PE, which I covered on Monday and sold 10800PE.
24. So all will go to zero as long as Nifty trades between 10800 and 11150.
25. Tomorrow IIP and Inflation data, next week Fed meeting, more importantly Sep 20 GST council meeting will decide the direction of market.
26. So not making any big bet in monthly options.
27. Sold 10500PE and 11200CE last Friday. On Monday closed 10500PE and moved 11200CE to 11300CE.
28. Markets may start flat but I expect some up move.
29. This is just pure gut feeling, not based on any data.
30. If everything goes well Nifty will break out of the range 10700-11150.
31. But if there is any disappointment (which personally I feel YES) in GST Council meet, things will go wrong.
32. PSU Banks have done well last Monday.
33. But Bank Nifty made huge move of more than 500 points, so volatility continues.
34. Auto sector doing well due to hope and that may continue.
35. Nifty future may trade between 10960 and 11080.