Pre Market Report, April 28, 2020 | Stocks and Commodities

April 28, 2020
Time: 8 am

Pre Market Report:

1. US markets closed higher.
2. But Asian markets are mixed.
3. Crude is down and that is having some impact.
4. SGX Nifty traded about 70, 80 points higher yesterday night, but given up most of the gains now.
5. Now SGX Nifty is trading almost flat.
6. Banking stocks did well yesterday.
7. RBI surprised the markets with 50K crore lifeline for Mutual Fund industry.
8. Once again Nifty future finding resistance between 9300 and 9400.
9. In the past, whenever markets were highly volatile, last few days have seen huge move in Nifty on either side.
10. Going by that logic, Nifty should move significantly higher.
11. Typically Nifty moves about 300 to 400 points in such scenarios.
12. Last Friday Nifty closed around 9150.
13. So Nifty has the potential to expire between 9400 and 9600.
14. IndusInd Bank results came after market hours.
15. So that stock will be in focus today.
16. It is expected to move violently. There is a 50% probability, it can move up to 12% up or down.
17. (Some people may ask, how? I may do a YouTube video to explain this)
18. A significant move in IndusInd Bak will also affect Bank Nifty sentimentally.
19. Yesterday though all Banks did well, HDFC Bank under performed.
20. So that stock will also be in focus, without HDFC Bank moving higher, Nifty can not cross 9400.
21. Kotak Bank has done well recently.
22. In fact, yesterday it hit series high.
23. Huge open interest added at Nifty 9200PE and 9300PE.
24. Among the Calls, Nifty 9500CE saw good addition.
25. So smaty money expect Nifty to expire between 9200 and 9600 (I am factoring in the premium received)
26. I also sold Nifty 9200PE and 9100PE and 9000PE yesterday.
27. I also sold Bank Nifty 18500PE and 19000PE.
28. Selling Options close to expiry has its own advantages (Faster Time Decay) and disadvantages (Gamma Effect).
29. So do not blindly follow me, more over I am giving what positions I took yesterday, not what positions I am planning today.
30. Nifty future may trade between 9280 and 9420.