Pre Market Report, April 1, 2020 | Stocks and Commodities

April 1, 2020
Time: 8 am

Pre Market Report:

1. US markets closed in red after a volatile session.
2. US markets fell for second day, still S&P 500 VIX also fell for second day.
3. But the news coming from US are not good.
4. White House is projecting 1 lakh to 1.4 lakh death in US due to Corona.
5. Trump also said, next two weeks will be very bad.
6. Europe is stabilising but US is getting into worst phase.
7. When mother markets doing so badly, how long other markets can do well?
8. So it is time to be cautious for next two to three weeks.
9. Asian markets are mostly negative.
10. But they are off from early morning lows.
11. In India also, VIX came down.
12. Today is the first day, if I am not wrong, Nifty will open within a range of -100 to +100 points.
13. So if markets stabilises, VIX will continue to fall.
14. Again, today is weekly expiry, so expiry related volatility will continue.
15. Most brokers reduced or removed intraday margins, so the volatility may not be too high.
16. Nifty facing resistance between 8600 and 8700.
17. So on any bounce towards this region, selling far OTM Calls will make sense.
18. Both April and May 10000CE are trading at a decent premium.
19. Even 11000CE is trading at a good premium in May series.
20. If US death crosses 1 lakh, we might retest earlier low of 7500 at lest once.
21. So it will be good to buy some put options if there is any bounce in the markets.
22. You can finance the buy by selling weekly Puts.
23. Bank Nifty is looking too weak.
24. In last 30 minutes yesterday Bank Nifty fell 500 points but Nifty fell only 100 points.
25. For today's expiry I sold Nifty 8000PE and 9000CE and Bank Nifty 18000PE and 20000CE.
26. Hoping to make some profit as Nifty is not likely to make a big move at the open.