Pre Market Report, November 21, 2019 | Stocks and Commodities

November 21, 2019
Time: 8.10 am

Pre Market Report:

1. US markets closed in negative due to trade uncertainty.
2. Hong Kong bill is passed in US houses and sent to President's sign.
3. So Asian markets are also falling.
4. Hong Kong fell more than 500 points.
5. SGX Nifty has fallen by 40, 45 points.
6. Reliance was the main reason for bullishness yesterday.
7. Since it was up by 100 Rupees from day before yesterday, some profit booking came and Reliance also fell Rs 20 towards the end from intraday high.
8. Kotak bank fell more than Rs 20.
9. Bulls were disappointed as Nifty closed slightly below 12000.
10. BPCL divestment, 2 year moratorium for Telcos are good initiatives from Govt side.
11. Bank Nifty future trading at 50 points discount to spot.
12. Overall this entire month is all about consolidation.
13. Yesterday for 3rd time in this series, Nifty future closed above 12000.
14. But now trading below 12000 in Singapore.
15. Nifty future gap down of 40, 50 points will create problems for option sellers.
16. Yesterday I also sold lot of put options at 11900 at Rs 12.
17. I also sold 12100 call options. I may have to sell 12050 calls today.
18. Bank Nifty, I sold 30800PE, 31000PE, 31500CE, 31800CE.
19. I think these trades are safe.
20. We can expect Bank Nifty to expire between 31000 and 31500.
21. Though Global cues are negative, Govt announcements will limit the downside for our markets.
22. We can expect Nifty to expire between 11950 and 12060.
23. But markets can be highly volatile.
24. Expecting markets to trade lower in the first half and also expecting some sharp move towards the end of the day.
25. If Nifty future opens around 11980, one can tray 12000 short straddle.