Pre Market Report, June 19, 2020 | Stocks and Commodities

June 19, 2020

Time: 8.15 am

Pre Market Report:

1. Happy to announce that 16500 people registered for Webinar - Options Unlocked.
2. Registration is limited to 20000 people.
3. US markets ended mixed.
4. Asian markets are also mixed.
5. SGX Nifty is down by 40, 50 points.
6. Yesterday the shrt covering rally came.
7. Day before yesterday, in the last one hour Nifty fell 150 points as PM speech was largely misinterpreted.
8. Yesterday PM spoke about Economy.
9. Then markets reversed.
10. Reliance hit all time high once again.
11. Banking stocks out performed.
12. Yesterday was a bad day for Option sellers.
13. Those who sold Call options lost heavily as Nifty shot up nearly 300 points and Bank Nifty shot up 1000 points from intraday low.
14. Those who sold Put options also had some bad experience.
15. One follower told me that he sold 19200PE for Rs 3 and put Rs 15 as Stop Loss, his Stop Loss was triggered when Bank Nifty shot up 500 points, within a fraction of a second Put premiums collapsed below Rs 3.
16. If anyone has intraday chart for Bank Nifty 19000PE and 19200PE, you can share.
17. India China border problem was blown out of proportion.
18. I have been saying that its effect in stock market will be very little.
19. Since markets made a big move, markets may consolidate today.
20. Now FIIs have turned net buyers in Cash market.
21. Usually markets make big moves in the last few days of expiry.
22. So expect a good move next week.
23. For this week, I said 9700-10350 is the range.
24. Markets respected this range.
25. For entire month, I said 9500-10500 is the range.
26. That is also respected so far.
27. Most important thing in yesterday's trade, India VIX fell.
28. Option premiums collapsed.
29. At some point, Bank Nifty was flat but 19000PE fell drastically.
30. Reliance I took long position at 1620 few days before and sold 1700CE. Now Reliance has shot up to 1662, yet 1700CE is trading lower.
31. When market moves higher, India VIX moves lower, that is when Covered Call people make lot of money.
32. Nifty future may trade between 9980 and 10120 a narrow range.