May 05, 2020
Time: 8.30 am
Pre Market Report:
Time: 8.30 am
Pre Market Report:
- US markets closed in Green after trading in Red for first half of the day.
- Asian markets are higher.
- Markets are extremely oversold in the short term.
- Bluest of blue chips are fell more than 10% yesterday here.
- Only Reliance helped Nifty from collapsing.
- More and more Economies are opening from Corona lock down.
- SGX Nifty is trading around 9400.
- That is a decent gap up of more than 100 points.
- Yesterday sold lot of Put options at 7500, 7000 in June and December series, taking this big fall as opportunity.
- In the next few days, there will be good profit both due to the price value as well as VIX.
- FIIs have sold for Rs 1374 crores in Cash market.
- Surprisingly DIIs have sold even more, Rs 1662 crores.
- There was unwinding in F&O also.
- Markets are likely to be volatile.
- Going forward, Govt may announce Stimulus measures, that is the main risk on the up side.
- Down side, there are many risks.
- April series first day's high was the high for Nifty and Bank Nifty for the rest of the series until last week.
- Same way, yesterday's low should be the low for the rest of May series, until last week of May.
- This view is valid as long as there are no major negative flow.
- That is why sold lot of Put options.
- Even Nifty 8000PE weekly was trading around Rs 5, giving more than 0.5% in 3 trading sessions.
- Yesterday's fall was surprising, there was no major news flow, US-China tensions are nothing new, due to Elections in US later this year, handing Corona Virus so badly in US, Trump needs this kind of news flow.
- India VIX shot up 10% yesterday.
- Premiums were very high.
- Going forward, Markets may stabilise, VIX will go down.
- I did 'Short Straddle' in Nifty June 9500.
- Collected about Rs 1000 premium.
- Banking stocks will be in focus as they are oversold.
- Bajaj Finance fell more than 10%, highly volatile. I sold 2000, 1800, 1600PEs.
- Nifty future may trade between 9300 and 9480.
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