Pre Market Report, December 26, 2019 | Stocks and Commodities

December 26, 2019
Time: 8 am

Pre Market Report:

1. December series is coming to an end.
2. Last year December series ended around 10800.
3. This year it is likely to end around 12200-12300.
4. That is a decent return.
5. For the last many months, I have been suggesting Nifty 12000 short straddle.
6. Last month expiry, Nifty was around 12150.
7. So December, on close to close basis, markets did not move much.
8. People who have sold Calls and Puts have made very good profit.
9. SGX Nifty is almost flat.
10. India VIX is below 12.
11. First time I am seeing Bank Nifty ATM straddle much below Rs 200, a day before expiry.
12. On Tuesday both FIIs and DIIs were net sellers.
13. Today volume is likely to be very less.
14. This less volume can bring some volatility.
15. I have sold both Nifty 12200PE and 12250CE, expecting a range bound move.
16. Reliance has been looking very weak in the last two days.
17. Due to low VIX, option premiums are too low.
18. Trading in options for expiry day is going to be very difficult today.
19. Metals and Autos are doing well.
20. But Maruti fell due to ex-MD fraud case.
21. Crude prices are moving higher and that is not good for India.
22. Nifty future is likely to trade between 12180 and 12300.