Pre Market Report, October 16, 2019 | Stocks and Commodities

October 16, 2019
Time: 7.30 am

Pre Market Report:

1. Bank Nifty met with huge resistance around 28600 for the last few days.
2. Yesterday it was broken decisively due to US-China Trade deal news.
3. Nifty also broke the resistance of 100DMA which was around 11410.
4. FIIs have bought for third straight day in Cash market.
5. What was surprising, both FIIs and DIIs were net buyers in Cash market.
6. Nifty has taken out Oct 4 high which was RBI policy day.
7. Remember Nifty fell 200 points on that day.
8. US-China Trade Deal, Hope of Brexit deal, Stronger than expected US corporate results, German and France indices hitting all time high, suddenly things are changing very fast.
9. In the beginning of this month, I said Nifty will go all over places.
10. Reason: 5 week month with Corporate results, RBI policy, state elections.
11. Nifty has already made about 800 points swing.
12. Hugely volatile also.
13. Day before yesterday afternoon, Nifty future was close to 11300, yesterday afternoon, it was close to 11500.
14. The big move is yet to come.
15. This Friday evening Reliance results, Saturday HDFC Bank results, Axis Bank results on Monday (which is a holiday) will make huge move possibly next week.
16. In addition, election results on Thursday will make markets more volatile.
17. We are just about 2% away from swing high on Sep 23.
18. We are just about 5% away from all time high.
19. Anything can happen in stock market, markets will rally when you expect it least.
20. Right now markets are looking bullish with FIIs turned net buyers.
21. So just enjoy the ride.
22. I sold 27000PE, 27500PE, 28000PE in weekly options of BN.
23. On every dip, I will look to sell Put options.
24. One, I am bullish, two, option premiums are so high.
25. SGX Nifty is trading higher than yesterday's high of 11473.
26. Luckily I bought lot of Call options.
27. Yesterday sold Nifty 11100PE and 11200PE.
28. Today planning to sell 11300PE as I am expecting Nifty to expire above 11300 tomorrow.
29. I bought 11400CE and sold 2X11500CE two days before.
30. Will be very lucky if Nifty expires around 11500.
31.  tomorrow.
32. Similarly bought BN 28300CE and sold 2X28800CE.
33. If BN expires around 28800, then this will give maximum possible return.
34. Remember, profit booking can come any time as markets are up for 3 days.
35. But I think that profit booking will not have an impact of more than 100 points in Nifty and 300 points in BN.
36. That is why I sold 11200PE in Nifty and 28000PE in BN.
37. BN is making more than 700 points swing everyday.
38. That may continue for next few days also.
39. For the first time in last many trading sessions, India VIX fell.
40. But a meaningful fall in VIX will come only next week.
41. Nifty future may trade between 11400 and 11520.