Pre Market Report, January 9, 2020 | Stocks and Commodities

January 9, 2020
Time: 8 am




Pre Market Report:

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