January 9, 2020
Time: 8 am
Pre Market Report:
Time: 8 am
Pre Market Report:
- US markets closed higher.
- After missile attack, Iran said, it does not want any escalation.
- Trump also said, he wants peace.
- Yesterday SGX Nifty showed a gap down of more than 150 points.
- Today it is showing more than 100 points gap up.
- Luckily I closed all my monthly Call options when markets were lower.
- But sold weekly Call options where I am trapped now.
- I need to manage today effectively, but my monthly Put options will be safe.
- Even yesterday the intraday volatility was huge.
- Bank Nifty making violent moves between 31000 and 32000.
- In Bank Nifty also, sold weekly options which are in trouble now.
- But managing may not be a big problem as volatility is high and hence option premiums will also be high.
- Today Bank Nifty will be in focus as Kotak Bank case comes up in High Court.
- As per sources, the case will be the first one in the high court business today.
- Kotak Bank has ever since this news came and it can make a big move if case is favourable to Kotak.
- Even if case is not favourable, it may not fall much as it has already fallen and market sentiment is good.
- So it is good to close short positions and take long positions.
- In the beginning of this series I said Nifty is likely to trade between 12000 and 12500.
- Now it has tested the lower range.
- Many times, if it tests the lower range, then in the next few weeks, it will test the higher range also.
- Let us see what happens. There are many good news now.
- Easing of Geo political tension, US-China trade deal on Jan 15, corporate results starting from today, etc.
- Now it is time to be cautious on the higher side.
- Yesterday's low should be the low for this expiry.
- On any dip, you can sell Put options from 11900 to 11500.
- Stop loss should be yesterday's high of those option prices or Nifty's low yesterday.
- There is huge short positions which will make sure market does not fall significantly.
- SGX Nifty is trading around 12180 which means Nifty will open around 12120 and 12130.
- Yesterday sold 12100CE which may be in trouble.
- Nifty future may trade between 12100 and 12220.
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