Pre Market Report, September 19, 2019 | Stocks and Commodities

September 19, 2019
Time: 8.am

Pre Market Report:

1. Yesterday our markets were very high volatile.
2. Bank Nifty moved more than 300 points five times.
3. FIIs have sold for Rs 980 crores in Cash market.
4. FII selling is not likely to subside anytime soon.
5. There was sudden selling in both HDFC Bank and HDFC.
6. In fact if not for these two stocks, Nifty future would have ended above 10900.
7. Today is the 3rd weekly expiry.
8. Still markets are down for this series.
9. There is no hope of positive September.
10. Only hope was GST council but fitment committee rejected GST cut for Autos and Biscuits.
11. Auto stocks have fallen about 10% in the last few days.
12. Yesterday Fed cut rates by 25 basis point.
13. But has given no clue about future cuts.
14. Markets were not very happy and hence sold off.
15. But after sell off, recovered to close almost flat.
16. Asian markets are mostly trading flat with positive bias.
17. But SGX Nifty is trading about 20 points lower.
18. That is mainly due to FII selling.
19. Markets are likely to be volatile due to weekly expiry.
20. Max Pain for nifty is at 10900.
21. But it may be difficult for Nifty to expire around 10900.
22. Huge OI added at 10900CE and 10950CE.
23. Huge OI added only at 10700PE on downside.
24. So smart people expect expiry between 10700 and 10900.
25. Max Pain for Bank Nifty is at 27300.
26. Huge OI added from 27500CE to 27800CE.
27. Significant OI added at 27100PE followed by 26800PE.
28. Bank Nifty may expire anywhere between 27000 and 27500.
29. Keep watching HDFC Bank, if you are trading in Bank Nifty.
30. This fall is not actually due to Crude, it was an excuse to sell.
31. HDFC and HDFC Bank have no reason to fall due to Crude.
32. Every few hundred points up move, FIIs use them to start selling aggressively.
33. As long as 10800 is holding, we can have some hope.
34. Otherwise, markets will see more sell off.
35. Markets can not go home with positive mood ahead of GST Council meeting.
36. So be ready for high volatile, 3 way, 4 way movements.
37. If Bank Nifty moves significantly higher, say 200 point up, then buy both 27500CE and 27000PE. In case of any violent move on either side, you will make some money.
38. But this will work better in the afternoon when option premiums will be very low.
39. In the morning, it is better to sell CE on rise, 27500CE and above and sell PEs on every dip, 26800PE and below.
40. Nifty future may trade between 10800 and 10920.