Pre Market Report, November 20, 2019 | Stocks and Commodities

November 20, 2019
Time: 8.30 am

Pre Market Report:

1. US markets ended mixed.
2. Asian markets are also mixed.
3. SGX Nifty is down slightly.
4. But the talk of the town is Reliance GDR up by about 7%.
5. Reliance was up by Rs 50 from day's low to high yesterday.
6. Reliance announced that it will increase the tariff for JIO.
7. It seems that some people knew this yesterday.
8. Banks hit the swing high (high after Sep 23) but Nifty has not.
9. Yesterday on close to close basis, Nifty was not up significantly.
10. But there was significant unwinding of Call options in both weekly and monthly contracts.
11. Any dip, I am also planning to cut my call options.
12. I have short straddle at 12000. That is making good profit.
13. PSU Banks are very bullish.
14. Many smaller PSU Banks were up by 10% to 20%.
15. So the momentum can continue and that can support Bank Nifty.
16. So Bank Nifty is likely to test all time high before Nifty.
17. Bank Nifty was up significantly despite ICICI Bank is down.
18. SBI is looking very bullish.
19. I bought SBI 330CE and sold 2X340CE.
20. Will make profit if it expires between 330 and 340.
21. As stated earlier, Nifty is likely to trade between 11800 and 12200 until this expiry.
22. But we can expect some fire works in the last week.
23. That is because, very rarely markets consolidated for 3 weeks.
24. Still there are hopes of all time high in this month.
25. Bank Nifty all time high is 31700 but 31800 Call option is trading at significant premium.
26. If you are a bear, you can sell that.
27. I sold Bank Nifty weekly 30000PE and 30200PE earlier and sifted to 30500, 30800PE yesterday.
28. I also sold Nifty 11800PE and planning to shift to 11850PE in weekly if markets stay bullish.
29. In the last half an hour Nifty swung between 11940 and 11990.
30. So these levels are important to watch for further direction.
31. Nifty future is likely to trade between 11920 and 12040.