Pre Market Report, January 8, 2020 | Stocks and Commodities

January 8, 2020
Time: 8 am

Pre Market Report:

1. US markets closed marginally lower.
2. But 5 am Indian time, the news broke out that Iran launched a dozen of missiles attacking US bases in Iraq.
3. Though casualty report is not available, looking at the financial markets reaction, it may be bad.
4. US is trying to downplay this incident.
5. US President was supposed to address the Nation which he cancelled later.
6. If he speaks about any counter retaliatory attacks, financial markets will fall further.
7. Probably he wants to wait and watch for another day, so that financial markets panic will subside.
8. Crude shot up by more than 4%.
9. Gold also shot up, at 7 year high now.
10. SGX Nifty is down by more than 150 points.
11. Though part of this problem factored in, there will be some panic selling.
12. I have sold 12000, 11900, 11800PE and 12400, 12500, 12600CE earlier.
13. Then closed 12600CE and sold 12300CE.
14. But Nifty falling much below 12000 is a concern.
15. Either I have to consider some short or have to sell Call options aggressively.
16. In weekly options I only have Call options.
17. Sold 12200CE in weekly. In Bank Nifty sold 32000, 32200CE. 
18. Most Asian markets are down only 1%.
19. But we will react more for many reasons.
20. First, we are buying significant amount of Crude from Iran.
21. Two, Crude and Gold prices higher, not good for India.
22. Meanwhile advance GDP data shows growth at decade low of 5%.
23. Nifty may stabilise around 11900.
24. Bank Nifty may stabilise around 31000.
25. There is no need to talk about resistance today.