December 19, 2019
Time: 8 am
Pre Market Report:
Time: 8 am
Pre Market Report:
- US markets were flat with positive bias.
- Volumes were low due to impeachment issue.
- Asian markets are also mostly flat with some positive and some negative bias.
- SGX Nifty is down by about 20 points.
- Yesterday morning, our markets were negative.
- Nifty future premium came down significantly and traded only about 10 points premium.
- Later in the day, premiums have shot up.
- HDFC Bank was the star of the day, hit all time high.
- But Bank Nifty did not perform well due to PSU Banks.
- State Bank fell almost Rs 10 from intraday high.
- Nifty future has shot up 400 points in last 7 trading sessions.
- So it may be time for some consolidation.
- I was holding some long positions in SGX Nifty.
- I closed those positions, I made about US$28000 on an investment of US$50000, more than 50% return.
- Option premiums in January series are very low.
- But I am expecting a trending month in January.
- Hedging with options is difficult in low Vix environment.
- So decided to close all future positions.
- Yesterday Reliance and HDFC Bank supported the market.
- FIIs have bought for Rs 1836 crores in Cash market.
- Both Nifty 12200PE and CE added huge OI.
- The combines premium is about Rs 70.
- So Nifty will have to expire between 12130 and 12270 for this straddle to make some money.
- Since Nifty shot up by about 400 points in last 7 trading sessions, profit booking is not ruled out on expiry day.
- But positive Global cues, huge buying by FIIs will limit the downside.
- yesterday when Tata group news broke out, Nifty fell 30 points but shot up by the same amount within few minutes.
- If the remove Tata group shares which did not recover completely, the recovery was more than the fall.
- That shows underlying bullishness.
- As I said earlier, every dip is a buying opportunity now.
- Nifty future may trade between 12180 and 12300.
- Expect a sharp move towards the end of the day.
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