Pre Market Report, October 1, 2019 | Stocks and Commodities

October 1, 2019
Time: 8 am

Pre Market Report:

1. Yesterday I under stimated the effect of India Bulls news.
2. Due to WhatsApp messages floating around, exposure of many banks to India Bulls group, Bank Nifty fell drastically.
3. From day before yesterday's closing, Bank Nifty fell almost 1000 points.
4. Bank Nifty has been making huge moves.
5. RBL Bank, IndusInd Bank fall 7 to 10% due to their exposure to India Bulls group.
6. PSU Banking stocks fell drastically.
7. But late afternoon there was some recovery in Nifty.
8. Nifty took support at 100DMA around 11400.
9. Since the trend is up, we should take support around 11400.
10. Global cues are good.
11. SGX Nifty is up by 15, 20 points.
12. India Bulls news has been factored in in Bank Nifty now.
13. It is not likely to fall further.
14. Yesterday at some point, Bank Nifty Put 1000 point down was trading around Rs 25 while 2000 point up Call was trading at Rs 25.
15. People are buying Call options more aggressively.
16. Yesterday sold 11200PE at Rs 8.50 and 11700CE at Rs 10.
17. Expecting to make some money in these trades.
18. Crude is below $60 and that is good for us.
19. US and European futures are higher.
20. So we can expect some positive bias in today's trading.
21. However, if markets move significantly, I will look to sell 11700CE.
22. I am expecting Nifty to expire below 11700 this week.
23. Markets will not make new highs ahead of events.
24. RBI policy on Friday is a big event, so Nifty will not cross 11700 before that.
25. Core sector growth came at minus 0.5.
26. That will increase the expectation of rate cut by RBI.
27. Today Auto companies will declare monthly auto sales data.
28. That will decide movement in auto stocks.
29. Though nobody is expecting any good news from that front, any good news will be a positive surprise.
30. So today focus will be on Auto, Banking, OMCs.
31. Nifty future is likely to trade between 11520 and 11640.