Pre Market Report, April 30, 2020 | Stocks and Commodities

April 30, 2020
Time: 8.30 am


Pre Market Report:

1. US markets rallied.
2. Once again it is Gilead that lead the markets.
3. Optimism over Corona drug lifted the sentiment.
4. Asian markets are Green.
5. SGX Nifty trading above 9700.
6. This huge gap up will be a big blow to CE writers.
7. Last week I said, Nifty will trade between 9000 and 9500.
8. But Nifty went to 8800.
9. This week I said Nifty will trade between 9000 and 9500.
10. Today Nifty will open above 9700, if SGX Nifty is any indication.
11. But earlier I cautioned, Nifty is finding huge resistance between 9300 and 9400.
12. That is where 38.2% retracement of Fibonacci lies.
13. Once 9400 is crossed decisively, next resistance is at 9900-10000.
14. Nifty, yesterday low 9390, now SGX Nifty above 9700.
15. Unless you have good conviction and quick in reacting, you can not make money in market.
16. There is no point in looking at OI, sometimes in trending markets, these things do not work.
17. But for the last few days IO on Put side was huge compared to OI on the Call side.
18. In the initial period of this series everyone was bearish.
19. Lock down is being extended, more people have virus in India, Govt not doing enough testing, how can market go higher?
20. The consensus was so good that June Nifty 7000PE was trading around Rs 500.
21. But this kind of breakouts are very difficult to trade.
22. In the last few minutes of yesterday's trade, Bank Nifty fell about 400 points.
23. This is the reason why we advise people not to trade in high volatile markets.
24. Or to trade with very low volume.
25. Expect Nifty to open around 9700 and consolidate the gains.
26. I am not expecting any big volatility today.
27. March expiry was at low and April expiry is at high.
28. That is how stock market changes its mood.
29. That is why I always say, "I am not a Bull, I am not a Bear, I am a Chameleon"