Pre Market Report, September 17, 2019 | Stocks and Commodities

September 17, 2019
Time: 8 am

Pre Market Report:

1. Yesterday though SGX Nifty was trading around 11000, Nifty made an attempt to recover.
2. Nifty future almost touched 11080.
3. But came under selling pressure, only to break day's low.
4. Finally Nifty future closed around 11010.
5. FIIs once again have sold in Cash market.
6. Sold Index Futures worth over Rs 1000 crores.
7. But considering the news flow, the figures are not that bad.
8. Markets are fragile and falls even with small selling.
9. September series, 10 trading sessions are over and now we have only 8 more trading sessions.
10. During this 10 trading sessions, Nifty has not gone anywhere.
11. Nifty Sep future closed at 11002 on August 29, August expiry, yesterday it closed at 11011.
12. Almost 1 point up move for every one trading session.
13. India VIX shot up as expected.
14. There are two big fears now.
15. One, will Saudi retaliate?
16. Two, will there be further attack on Saudi?
17. So this fear will take time to subside.
18. So the VIX is not likely to go down immediately.
19. Since Nifty has not gone anywhere in last 10 trading sessions, Nifty is likely to make a big move.
20. I think that big move is reserved for next week.
21. GST council meet outcome may become a trigger.
22. Either Nifty will expire between 10700 and 10800 or 11200 and 11300.
23. For next three days markets may follow global cues.
24. But markets will be volatile as usual.
25. I am planning to do this strategy: +1X11000PE, -2X10900PE.
26. I am not expecting Nifty to fall too much from here.
27. If there is any further escalation in Geo political tension, then things may change.
28. Sold 11200CE at Rs 12 yesterday, it went up to Rs 21.75 but closed at Rs 6.7.
29. After 3 pm, sold 11150CE also at rs 16.
30. Yesterday I expected Bank Nifty to out perform as the problem was related to Reliance, Autos, OMCs.
31. But Bank Nifty under performed.
32. Even after announcements for Housing, HDFC fell.
33. In fact HDFC and Reliance alone were responsible for 50% fall in Nifty, as per CNBC.
34. If Nifty closes below 11000 by end of today, I am planning to cut some of my long positions.
35. Nifty future may trade between 10960 and 11080.