Pre Market Report, September 24, 2019 | Stocks and Commodities

September 24, 2019
Time: 8.15 am

Pre Market Report:

1. US markets ended mixed.
2. Asian markets are mostly trading with positive bias.
3. SGX Nifty is up by about 60 points.
4. Yesterday for last 15 minutes, due to technical glitch, the data in trading terminals did not refresh.
5. That created some kind of panic, trades were going through but had to be placed at market price as prices were not updating.
6. That created lot of confusion.
7. As expected FIIs bought heavily and short covering also aided.
8. Bank Nifty shot up nearly 4000 points in just two days.
9. After two days of huge rally, the best two days gain in the history of stock market probably, the big question, will markets continue to rise or will consolidate?
10. If it consolidates, then it is good for further rally.
11. If the rally continues with good momentum, then at some point profit booking will come and there will be some sharp sell.
12. We have to go back to the normal trading with 50, 60 points gap up or gap down, Nifty ATR of 100 to 120 points.
13. BJP Govt's U turn from being socialistic is an historical event.
14. This deserves a huge rally and personally I expect Nifty to cross all time high in next few weeks.
15. But going long at this stage, risk reward ratio may not work in your favor.
16. Nifty future may consolidate between 11500 and 11800 until this expiry.
17. Expiry will bring more volatility.But still can be managed as premiums are so high.
18. Yesterday Bank Nifty 32000CE traded at more than Rs 100 and closed at Rs 80.
19. Still that is 1400 points away and only 3 trading sessions.
20. Similarly 29000PE also trading around Rs 55 which is about 1600 points down.
21. Expectation is so high and one or two days of consolidation, all option prices are likely to collapse.
22. Nifty future should trade between 11580 and 11720.