Pre Market Report, December 17, 2019 | Stocks and Commodities

December 17, 2019
Time: 8 am

Pre Market Report:

1. Yesterday Global cues were mixed.
2. Nifty opened higher.
3. But Nifty future and Bank Nifty future erased most of the premiums.
4. People might have taken long positions on Friday, expecting some good announcement from FM.
5. But since there was no announcement, they might have exited the positions.
6. That dragged market as well as Futures premium.
7. I sold Bank Nifty 32000 straddle on Friday, yesterday it has given more than Rs 100 per share as profit.
8. That is nearly 2% return for capital deployed in just one day.
9. Yesterday around 2.30 pm, selling pressure came and Nifty fell about 50 points.
10. Reliance and ITC under performed.
11. ITC is almost at 52 week low.
12. I sold Reliance 1600 straddle at Rs 80 few days before (I posted the trade in Twitter), so it is good if it consolidates around this level.
13. Kotak Bank and ICICI Bank hit all time high again.
14. But HDFC Bank has not been doing well.
15. Sold Bank Nifty 31500PE and 32500CE and it is giving good profit.
16. Asian markets are mostly positive.
17. SGX Nifty is trading about 20, 25 points higher.
18. FIIs were net buyers for Rs 728 crores.
19. But we need to see whether this small gap up sustains or not.
20. We have only 7 more trading sessions. During the press meet FM has given an indication that there will be no GST rate hike on Dec 18 GST Council meet.
21. So markets may see a relief rally once this is confirmed on Dec 18.
22. Just like November series, we can expect some significant move in the last week of December.
23. I have started rolling over my positions to January contracts.
24. There is some unwinding in puts and additions in calls.
25. That is not a good picture for bulls.
26. Markets may consolidate until further triggers.
27. Nifty is likely to trade between 12000 and 12200 for next few days.
28. HDFC Bank will have to perform for Bank Nifty to cross all time high.
29. PSU Banks are also consolidating.
30. Nifty future may trade between 12060 and 12180.