Pre Market Report, November 28, 2019 | Stocks and Commodities

November 28, 2019
Time: 8.10 am

Pre Market Report:

1. Yesterday in the last half an hour markets shot up.
2. SBI helped both Nifty and Bank Nifty to close highest point of the day.
3. SBI Card IPO was the trigger for this rally in SBI.
4. First time, Nifty spot closed above 12100.
5. One or two years before, there was a trend where Nifty traded violently but within 300 points range and closing at the upper end and that continued for 5 months and Nifty shot up 1500 points.
6. November has seen that.
7. Nifty traded with high volatility between 11800 and 12100 and closing near 12100.
8. If the history has to repeat Nifty will trade with huge volatility between 12100 and 12400 in December and will close around 12400.
9. Let us see what happens. I have Nifty 12000 short straddle and collected about Rs 500.
10. So I have no problem between 11500 and 12500. Additionally I sold some 11800PE.
11. Last month Bank Nifty hugely under performed Nifty, now that is hugely out performing.
12. PSU Bank are looking bullish.
13. US markets closed marginally higher.
14. But after markets close, Trump signed Hong Kong bill.
15. So Asian markets are reacting negatively and US futures are also down.
16. SGX Nifty is also down by 15, 20 points.
17. Nifty 12000PE has highest OI among puts and 12200CE among calls.
18. So Nifty is likely to expire between 12000 and 12200.
19. Bank Nifty 31500PE and 31900CE have highest OI among Puts and Calls respectively.
20. Reliance shot up by 7, 8 rupees in the last half an hour.
21. So that stock will be in focus today.
22. We can expect range bound trade between 12150 and 12250 and a sharp move towards the end of the day.
23. We can expect some profit booking in the last half an hour.
24. Premiums are very low, making expiry day trade very difficult.
25. Nifty is likely to expire between 12140 and 12260.