Pre Market Report, June 9, 2020 | Stocks and Commodities

June 9, 2020
Time: 8 am

Pre Market Report:

1. Happy to make few announcements.
2. My blog readership crossed 31K yesterday.
3. Giving finishing touches to my "FREE WEBINAR" in collaboration with Bombay Stock Exchange hosted by Elearnmarkets.
4. Wish to make world record in this Webinar.
5. US markets closed higher.
6. S&P 500 wiped out all the losses of 2020.
7. Nasdaq is at all time high.
8. Asian markets are mixed.
9. SGX Nifty is up by about 50 points.
10. Yesterday morning I said, markets are opening gap up but Nifty future likely to break 10200, at least once.
11. But it broke 10200 and traded below that level and closed "Doji" pattern.
12. That shows indecisiveness.
13. We are struggling between positive Global and negative Local cues.
14. We are struggling between FIIs who are buying and DIIs who are booking profits.
15. Most people could not come out of the shock that Nifty shot up nearly 15% in two weeks.
16. Hence markets are highly volatile.
17. Yesterday Nifty future fell more than 200 points from intraday high to intraday low.
18. Bank Nifty was going all over the places.
19. Bank Nifty future fell 900 points from intraday high to intraday low and recovered about 300 points.
20. We are under performing world markets and that may get corrected in the next few weeks.
21. I am selling Put options in July series from 9000 and below aggressively on every dip.
22. I have sold 10000PE in weekly options also.
23. Yesterday many index heavy weights like HDFC Bank, Reliance, Kotak Bank fell more than Rs 50 from intraday high to intraday low.
24. Surprisingly, yesterday HDFC Bank and Reliance contributed most for Nifty fall.
25. Since morning HDFC Bank was under performing, may be some index management.
26. Reliance met with selling pressure many times around 1620, so need to watch very carefully, if Reliance crosses 1620, it can go to 1700 lifting the Nifty.
27. In that case, even Nifty 10500 target is not difficult.
28. More shorts are being created around all time high price, one short covering is enough.
29. Auto stocks will be in Focus as Hero Moto declares results.
30. Yesterday's high volatile market and closing at Doji pattern indicates markets are likely to break out or break down.
31. The probability of break out is high.
32. So I am not selling any Call options except for hedging.
33. Nifty future may trade between 10120 and 10320.