Pre Market Report, October 3, 2019 | Stocks and Commodities

October 3, 2019,
Time: 7.30 am

Pre Market Report:

1. One day Laxmi Vilas Bank came under PCA.
2. India Bulls fell 30%.
3. Rumpurs were floating around exposure of many banks to India Bulls Group.
4. And markets fell.
5. Next day the rumours were floating around RBL Bank in deep trouble.
6. Rumours started flying as on line transactions failed in many banks due to some technical glitch.
7. Then came selling of YES Bank shares by RNAM, 10 crore shres in one order.
8. So we had two days of very bad trades.
9. To add to the problems, US Manufacturing data came very bad Dow fell more than 300 points on Tuesday.
10. ADP Employement data came bad and fell another 500 points on Wednesday.
11. It has become a double whammy for us as we were closed yesterday.
12. SGX Nifty is trading 100 points down.
13. Bt I think markets will recover at some point and hence shorting at the open is not a good idea.
14. Due to bad Global cues, Crude oil has fallen below US$58.
15. Remember last time it shot up from US$60 to US$69, Nifty fell more than 400 points.
16. US markets also tend to recover after 4, 5% fall.
17. In fact I am planning to cover my short positions at the opening itself.
18. Auto sales data was not bad. Though down YoY, it was up MoM.
19. Today is weekly expiry day for both Nifty and Bank Nifty.
20. Option premiums are astronomically high due to huge volatility.
21. Bank Nifty closed around 28700 and 29500CE trading more than Rs 50.
22. Nifty 11600 which is about 250 points away, trading around Rs 5.
23. Put options are also trading at crazy premiums.
24. Hope to make some decent money by palying intraday.
25. Since the selling has come already in our markets, Crude is moving in our favour, Govt moving in right direction, not so bad auto sales figures are positives.
26. But continued selling by FIIs in Cash market, lowest GST collection in 19 months, bad Global cues are negatives.
27. Nifty 11000PE is also very active and 11600CE is also very active.
28. Bank Nifty from 27000PE to 3000CE all are active.
29. So there is no point in predicting the range today.
30. But as long as Tuesday's low is not broken, bulls can hope for some recovery.