Pre Market Report, January 7, 2020 | Stocks and Commodities

January 7, 2020
Time: 8 am

Pre Market Report:

1. US markets opened lower but closed higher.
2. US-China Trade tension or US-Iran issue, US markets correction is very shallow.
3. It is is a firm up trend.
4. Asian markets are positive.
5. Our market reacted too much for the news.
6. Nifty fell more than 250 points and Bank Nifty fell more than 800 points. 
7. It is clearly a knee jerk reaction.
8. Now SGX Nifty trading about 80 points higher.
9. Smart people who have gone short, covered their shorts yesterday closing time.
10. There may be some panic squre off today morning due to huge gap up.
11. Nifty 80 points gap up and Bank Nifty 200 points gap up is expected.
12. The main resons for such a big fall: (i) We buy crude mainly from Iran and (ii) Fall was mainly due to absence of buying and shorting rather than long unwinding.
13. Sold Call options aggressively.
14. But when markets move higher, VIX will collapse and that will take care of premium in Call options.
15. Crude prices fell about 3% from the top.
16. I have a policy of going long whenever there is a panic selling and going short whenever there is an Euphoric rise.
17. Yesterday I took long positions in Nifty future at 12078. But it fell muh more from there.
18. Today SGX Nifty trading around 12120, so I am happy.
19. Also sold Ashok Leyland 75PE with a view to take delivery.
20. Planning to add more midcaps into my folio.
21. As long as Nifty fture not breaking 12000, we can maintain bullish view.
22. The real action will begin next week when corporate results starts coming in.
23. I still believe Nifty will hit all time high once again.
24. But PSU Banks are looking so weak.
25. Nifty future may trade between 12080 and 12200.