Pre Market Report, April 8, 2020 | Stocks and Commodities

April 8, 2020
Time: 8.15 am

Pre Market Report:

1. US markets closed marginally lower after trading in green in the first half.
2. So Asian markets are also almost flat with some positive and some negative bias.
3. SGX Nifty is also down by about 200 points.
4. Yesterday's rally was so powerful, many front line stocks hit circuit limits.
5. In fact, yesterday's gain was the highest in Indian stock market, if you take traded gain.
6. In 2009, May, Nifty hit upper circuit within few seconds and second upper circuit of 20% also within few seconds.
7. So that day, Nifty was up 20% without trading, but yesterday's case was different.
8. Nifty opened 300-400 points and traded and moved higher.
9. ICICI Bank hit 15% circuit, HDFC Bank 10% circuit.
10. But Kotak Bank did not do well.
11. For the last few weeks, Nifty has been trading between 7500 and 9000.
12. Now we are at the top end of the range.
13. So how markets will move from here?
14. Either it can consolidate or can fall.
15. Breaking the 9000 resistance is not going to be that easy, until lock down is lifted.
16. US crossed 4 lakh infections and France crossed 10000 deaths.
17. After Italy, Spain, US, France is the fourth country to cross 10000 death.
18. India may lift lock down in a phased manner.
19. But Mumbai, financial centre, will continue to be locked down, as infections are very high.
20. After selling nearly 70000 crores, FIIs have bought for Rs 740 crores.
21. In weekly options, Nifty 8000PE has the highest open interest followed by 8500PE.
22. Among Weekly Call options, 9000CE has the highest open interest.
23. So Nifty may trade between 8500 and 9000 until tomorrow.
24. Nifty has been trading between 8000 and 9000 in the last few days with huge volatility.
25. And that may continue for next few days.
26. There will be further short covering only if Nifty crosses 9000.
27. That short covering rally can take Nifty up yo 10K.
28. Bank Nifty has been trading between 16000 and 21000.
29. I sold 24000CE in monthly Options.
30. I sold May Nifty 10000CE.
31. Earlier I sold lot of Put options 6500PE and below.
32. Now closed those positions and shifted to 7000PE.
33. Took some aggressive bets in weekly options, from 8500PE to 8000PE.
34. Even at the time of closing Nifty 8200PE was trading around Rs 30, that gives about 3% return in two days, as long as Nifty does not fall below 8200 by tomorrow.
35. Nifty future may trade between 8600 and 9000.