Pre Market Report, November 6, 2019 | Stocks and Commodities

November 6, 2019
Time: 8.15 am

Pre Market Report:

1. Today my interview with Online Tarding Summit 2019 is live.
2. To watch, register at https://academy.traderwave.com/a/18629/vFUA2E2e
3. US markets ended mixed.
4. Asian markets are also mixed.
5. SGX Nifty is down by 25, 30 points.
6. Yesterday Nifty closed in Red after 7 straight days of gains.
7. As I said earlier, now it is time for consolidation.
8. Nifty is not likely to fall below 11800 in this consolidation period.
9. Resistance will be 12K.
10. So in this period, option sellers will make very good money.
11. For tomorrow's expiry, I sold 12000, 12050, 12100CEs and 11800, 11750, 11700PEs.
12. I am expecting Nifty to trade between 11800 and 12000 until tomorrow.
13. FIIs have turned net buyer in Cash market once again with Rs 473 crores of buying.
14. But DIIs are accelerating their sell. They have sold for Rs 1593 crores.
15. Bajaj Finance hit all time high yesterday after successful QIP.
16. We need a trigger to cross 12K and any good news on US-China Trade agreement will be that trigger.
17. HDFC Bank, Kotak Bank, ICICI Bank under performance continues, dragging Bank Nifty.
18. PSU Banks and YES Bank supporting the Bank Nifty.
19. SBI shot up more than 20% in last few days, contributing more than 600 points for Bank Nifty.
20. Even then Bank Nifty is struggling to cross Nirmala candle high of 30600.
21. Infosys also gave up most of the gains and trading below 700.
22. But ITC is trying to go up.
23. Reliance has also been under performing.
24. There is no leadership sector that can take Nifty higher.
25. I shorted both Kotak Bank and HDFC Bank. I sold Call option in ICICI Bank.
26. Yesterday's corporate results have been good. Particularly Tech Mahindra results are good.
27. We are in the last leg of corporate results.
28. Tata Steel results are due today. Planning 400 short straddle.
29. As long as yesterday's low is not broken, we can expect some recovery towards the end of the day as FIIs have turned net buyers in Cash market.
30. Nifty future may trade between 11880 and 12020.