Pre Market Report, December 23, 2019 | Stocks and Commodities

December 23, 2019
Time: 8.10 am

Pre Market Report:

1. Usually December is a dull month.
2. But last two weeks, Nifty shot up from 11800 to 12300.
3. Markets are firmly in bull grip.
4. Huge OI added in puts.
5. On Friday, Bank Nifty future was trading about 50, 60 points discount for first half of the day.
6. Put premiums were slightly higher.
7. I sold 32000PE at Rs 103. At the end of the day, discount disappeared, BN 32000PE closed around Rs 75.
8. It was surprising, Nifty future at 30 point premium and Bank Nifty at 60 point discount.
9. Even around 3 pm, Nifty 12000PE was trading around Rs 10. 
10. I sold in huge quantities. Only 3 more trading days, Nifty falling 300 points, means an average fall of 100 points every day, the probability is very low.
11. Even ITM puts added more open interest.
12. But profit booking is not ruled out as Nifty shot up about 500 points in last two weeks.
13. China cut tariffs for some US products.
14. So positive developments are happening on US-China Trade deal.
15. India plans to restrict Reliance from selling its stake to Saudi Aramco.
16. So Reliance will be in focus.
17. Jharkhand election results is also a market moving news.
18. It will only be a sentimental as it is a small state.
19. FII continue to buy in Cash market, but the quantum is reduced.
20. PSU Banks fell 2% on Thursday and shot up more than that on Friday.
21. SBI has been making violent moves.
22. Right now markets are looking bullish and selling puts a to seize the opportunity.
23. Nifty future may trade between 12250 and 12350.