Pre Market Report, September 30, 2019 | Stocks and Commodities

September 30, 2019
Time: 8.15 am

Pre Market Report:

1. S markets fell on Friday as there was a news that US is planning to delist all China ADRs.
2. China ADRs fell, Alibaba fell more than 5%.
3. But later US said there is no such plan 'at this point of time'
4. Cina also over the weekend vowed to open up their financial sector.
5. China has opened almost flat.
6. Hence DOW futures are also higher.
7. SGX Nifty fell about 60 points on Friday night but now it is down just by 5, 10 points.
8. October series started with a negative note.
9. Usually this month, markets will go all over the places.
10. October is a 5 week series, so theta decay will be slow.
11. October has RBI policy, but the way Govt wants to prop up the Economy, rate cut is almost certain.
12. Only question is whether it will be 25 basis point or more.
13. Then corporate results will start from second week of October.
14. Most of the major companies will declare the results by the end of October.
15. My gut feel is that Nifty will trade between 11200 and 11800 for this month.
16. 11200 being 50% retracement, support will come there.
17. On the higher side, some profit booking will come.
18. Those who are interested in short strangle, 11000PE and 12000CE will be good.
19. On Friday morning I sold 12000CE at Rs 70.
20. On any fall below 11500, I plan to sell 11000PE and on any rise above 11600, I plan to sell 12000CE.
21. We can expect a major rally only if DTC is announced.
22. Until then it will be a consolidation market.
23. From today all stocks in F&O come under physical delivery.
24. I exited all my stock futures positions.
25. I lost huge some of money by playing stock futures. About Rs 3 crores.
26. learned a hard lesson, no more stock futures. Only index.
27. I made more than 10 crores in index futures and options but lost a major part of it by trading is stock futures and investments.
28. I am not a good investor. I invested in MF, even after two years, it has given 0 return, I paid more than Rs 1 crore as interest for the borrowed money invested in MF.
29. So decided to play only in index where my core strength is there.
30. Lakshmi Vilas Bank coming under PCA will affect India Bulls Housing again today.
31. Bank Nifty option premiums are so high.
32. Usuallt ATM straddle will trade at Rs 800 to 900.
33. On Friday it straded close to Rs 1700.
34. This is a good opportunity to sell straddles.
35. Even weekly straddle traded higher than usual monthly straddle.
36. That too when expiry is before RBI policy and one day holiday in between.
37. FIIs have sold in Cash market.
38. There was horting in futures also.
39. Crude is consolidating around $62.
40. Nifty future may trade between 11540 and 11660.