Pre Market Report, November 25, 2019 | Stocks and Commodities

November 25, 2019
Time: 8.10 am

Pre Market Report:

1. On Friday IT stocks fell as there was some news about tweaking H1b visa rules.
2. That dragged the markets down.
3. Nifty spot even broke 11900.
4. But closed above 11900.
5. Bank Nifty future is trading at discount and Nifty future has no premium.
6. Over the weekend, China announced more penalty for IP theft.
7. That is seen as compromise on trade war with US.
8. So Asian markets are higher.
9. But we have two problems.
10. One, Karvy issue, one Calcutta based broker also seems to be in trouble.
11. We do not know how this will affect our markets.
12. Second one is Maharastra uncertainty.
13. We have only 4 more trading sessions.
14. Ahead of GDP data on Friday, Nifty may not hit all time high.
15. FIIs keep buying in Cash market.
16. Though anything can happen in 4 days, barring unforeseen circumstances, Nifty may expire around 12K.
17. Even in May 2019, I suggested selling 12K December straddle.
18. I am holding Nifty 12000 short straddle which I plan to close if Nifty future breaches 11880 on downside or 12120 on upside.
19. For now any fall below 11900 seems to be a buying opportunity and any rise above 12000 seems to be a selling opportunity.
20. For December also I started selling 11800, 11700, 11600PEs and 12200, 12300, 12400CEs.
21. Markets are not making any big moves and India VIX also staying very low.
22. So premiums keep falling both sides.
23. I also suggested Bank Nifty 31000 short straddle in December series.
24. Will be making good profit as long as Nifty trading between 11800 and 12200.
25. Today Nifty future may trade between 11880 and 12000.