February 26, 2020
Time: 8.15 am
Pre Market Report:
Time: 8.15 am
Pre Market Report:
- US markets fell another 3%.
- On Monday it fell 3% and Tuesday another 3%, total of 6% in two days.
- Last time this has happened only in 2015 and 2008.
- CDC (Center for Disease Control) warning spooked the markets.
- Asian markets are down.
- SGX Nifty is down by about 100 points.
- FIIs have sold for Rs 2315 crores in Cash market.
- However they seems to be covering their shorts in F&O.
- Since there is very little premium in next month contract and markets are near bottom, they may not like to rollover their shorts.
- They may choose to square up the shorts and that may cushion the fall.
- Earlier I mentioned (in Twitter) if 11900 support is broken, Nifty is likely to take support at 11700.
- Markets are likely to be highly volatile.
- DIIs are expected to support the markets at lower levels.
- Somehow I feel Corona Virus fear is at its peak.
- The risk reward is not favourable to go short at this time.
- At the same time, going long is also not advisable.
- One can consider doing ratio spread, buy 11700PE and sell 2X11400PE in March or April series.
- VIX in US is above 25 while it is still below 17 in India.
- Autos and metals are doing very badly.
- Reliance has been under performing.
- Any recovery, we can expect only in next series.
- Usually, whenever markets are so bad, expiry happens somewhere near the low end of trading range.
- Lat one month trading range has been 11600 to 12400.
- Earlier I sold 12100 and 12200CE which I rolled down to 11900, 11950, 12000CE yesterday.
- On any bounce I plan to sell 11850CE today.
- I am not expecting any big recovery, I am expecting Nifty to expire below 11850.
- Bank Nifty I sold 31000CE day before yesterday and sold 30800CE yesterday.
- HDFC Bank has been weak as Aditya Puri sold his shares.
- I sold 1220CE yesterday at Rs 3.25. Just for two days, the premium is good.
- Nifty future should take support at 11700. Resistance may come at 11820.
Comments
Post a Comment