Pre Market Report, March 31, 2020 | Stocks and Commodities

March 31, 2020
Time: 7.30 am

Pre Market Report:

1. Worst month in human life is coming to an end.
2. But it is ending with some small good news.
3. WHO said that Europe is stabilising.
4. Even Italy reported less new cases.
5. But US cases are surging.
6. US is also planning around round of stimulus.
7. Coming back to our markets.
8. FIIs are selling hugely as and when there is some good news.
9. Yesterday came the news that 21 day lock down will not be extended.
10. Markets recovered, went close to previous day close.
11. Then FIIs pressed selling button.
12. The selling was so severe, even bluest of blue chips turned red.
13. Bajaj Finance fell 12%, HDFC fell 10%, HDFC Bank, ICICI Bank fell 8%.
14. All these are FII favorite counters.
15. Nifty fell 400 points from intraday high and Bank Nifty fell more than 1000 points.
16. But the fall came with less volume.
17. Today SGX Nifty showing 180 points gap up.
18. Yesterday markets fell significantly, India VIX was also up, despite that Put option premiums fell.
19. That is a good news for Option writers.
20. Crude recovering from 18 year low.
21. China Manufacturing PMI data came at 52, which is a pleasant surprise.
22. China will be the first country to stabilise.
23. Day before yesterday, shorted Bank Nifty and sold 20000PE, yesterday futures gave more than 1000 point profit whereas Put option gave only Rs 250 loss.
24. Nifty is likely to expire between 8000 and 9000 tomorrow.
25. Volatility is still very high, let us see how long it takes for VIX to cool down.
26. Until then on every rise, sell only Far OTM Calls like 11000CE.