Pre Market Report, April 20, 2020 | Stocks and Commodities

April 20, 2020
Time: 8 am

Pre Market Report:

1. US markets closed higher on Friday.
2. But Asian markets are mostly down.
3. That could be due to fall in Crude prices.
4. But Corona virus related deaths is coming down in US.
5. Many countries are opening up their Economies partially.
6. Nifty was very volatile on Friday.
7. Nifty opened around 9350 then fell towards 9100 and again shot up to 9350.
8. Now SGX Nifty is trading around 9250.
9. European futures are marginally higher while US futures are marginally lower.
10. Finally there was good short covering in Banking stocks.
11. ICICI Bank looks stronger than the rest.
12. We have to see how HDFC Bank reacts to its results.
13. The focus will turn to Infosys as it declares results today.
14. I am expecting some consolidation between 9100 and 9400 for one or two more days.
15. Options sellers look very bullish and 9000PE has the highest open interest, among Put options, in weekly options.
16. Whereas only 10000CE has the highest open interest among call options.
17. Markets may fall, may rise, but going forward, I am expecting India VIX to fall.
18. Still India VIX is much higher than S&P 500 VIX.
19. Asian markets are recovering from lows while I am writing this blog.
20. South Korea and Hong Kong both turned slightly positive.
21. Nifty will face resistance around 9300 (plus or minus 50 points).
22. If Nifty breaks out, then the next resistance is only at 10000.
23. So on every fall, I plan to sell Put options.
24. I sold Nifty 8800PE, 8700PE, 8600PE, 8500PE in weekly options.
25. Bank Nifty weekly options, sold 19000PE.
26. Nifty future may trade between 9200 and 9400.