Pre Market Report, October 22, 2019 | Stocks and Commodities

October 22, 2019
Time: 8 am

Pre Market Report:

1. Last Friday, Nifty was up for sixth day in a row.
2. But volatility is still higher.
3. Option premiums are still higher.
4. HDFC Bank and Reliance have come out with good results over the weekend.
5. Reliance GDR was up just 1%.
6. But HDFC Bank ADR was up by more than 2.5%.
7. Infosys news along with Reliance may drag the Nifty down.
8. Infosys alone may shave off about 100 points in Nifty.
9. But Bank Nifty will out perform.
10. Axis Bank results has been postponed to today.
11. It was supposed to declare results yesterday.
12. I have short position in HDFC Bank and sold ATM put.
13. I have short position in Kotak Bank and sold ATM puts.
14. I have short straddle in Axis bank and Reliance.
15. From today Bank Nifty will see lot of action.
16. Kotak Bank and Axis Bank are set to declare results today.
17. I have sold 28000PE in weekly and 27000PE in monthly.
18. Exit poll results are in favour of BJP.
19. So by considering all these, I expect India VIX to go down.
20. SGX Nifty is down by about 40 points.
21. FIIs have bought for just Rs 25 crores.
22. So short sellers may be active today in Nifty.
23. But Bank Nifty will cap the downside.
24. So expect a volatile session today also.
25. Since there are only 7 more trading sessions, Option premiums should fall.
26. Nifty has retraced 100% of last swing.
27. So markets may consolidate around 11700 for some time.
28. Further trigger is required for Nifty to breakout 11700 and reach all time high.
29. That trigger may come in the form of DTC or corporate results or US-China Trade deal.
30. Nifty future may trade between 11620 and 11740.