Pre Market Report, March 13, 2020 | Stocks and Commodities

March 13, 2020
Time: 8.15 am

Pre Market Report:

1. Absolute panic everywhere.
2. Bank Nifty fell more than 10%, Nifty went close to 10%.
3. US markets also fell 10%.
4. Brazil fell 15%.
5. Most Asian markets are down by 8 to 10%.
6. SGX Nifty was also close to 10% down, but now recovered a little.
7. Yesterday and today market phase is clearly "Capitulation" period.
8. No effort by Govts or Central Banks helping.
9. Yesterday Europe fell just after ECB announcements.
10. SGX Nifty fell just after RBI announcement of liquidity measures.
11. Corona Virus headline news is getting worst, Canada's PM's wife and many other top people have been infected.
12. The Fear of what Corona Virus can do driving the world markets, but China markets are far better as that market has reacted only to what Corona Virus did for them.
13. No technical, No fundamental, nothing will will work in this market.
14. Put premiums are so high, still buyers are making profit, Call premiums are so high, still sellers are making money.
15. Expect another volatile day today.
16. S&P 500 VIX hit a high of 76, I think 2008 peak was 81.
17. So logically, markets should be stabilise somewhere here.
18. Bank Nifty ATM straddle used to trade around Rs 800 to 900.
19. Now even Nifty ATM straddle (April series) trading at Rs 1200.
20. I just keep selling Call options at a distance.
21. Yesterday sold April 10000CE at Rs 420 and March 10000CE at Rs 265.
22. Sell OTM Call options and do less volume, that is the only way to survive this market.
23. SGX Nifty has recovered almost 300 points and now trading around 8950.
24. Let us hope that markets stabilise around 9000.
25. Nifty future should take support around 8800, that is my gut feel.