August 13, 2020
Time: 8.10 am
Pre Market Report:
- US markets closed higher.
- But Asian markets are mixed.
- SGX Nifty is almost flat.
- But yesterday night, SGX Nifty was above the swing high of 11376.
- Today we may not follow the Global cues due to Expiry.
- Yesterday we opened lower due to Global cues and IIP data.
- But even before the markets open, I felt SGX Nifty reaction was a over reaction.
- As expected Nifty recovered from the low levels.
- Bank Nifty out performed.
- FIIs were net buyers for Rs 351 crores in Cash market.
- DIIs however selling aggressively, they have sold for Rs 940 crores.
- Broader markets are more bullish.
- Old Economy stocks have been doing very well all over the world.
- IV is crashing in far month Options.
- Look at the picture at the end of this blog for Option prices of December contract.
- Both Call and Put Option prices fell.
- Will do a video on this topic today or tomorrow.
- Reliance is struggling between 2100 and 2200 with negative bias.
- So I sold 2400CE yesterday when there was some spike in Reliance.
- SBI broke out. Just few days before I joked, "SBI promised short sellers that it will not cross Rs 200".
- Remember, it is not that we are always right, we go wrong few times but manage the positions well.
- In fact, that was the first sign for Bank Nifty recovery yesterday.
- There are 10 stocks under trading ban and that happens only in a bull market.
- Auro Pharma is a new entrant in trading ban just ahead of results.
- Results seems to be good. But adjustments not possible.
- Yesterday I sold 900PE and 1000CE in Auro Pharma. I have to see how I can manage, if Auro moves violently.
- Shooting up is not a problem, can hedge using Cash market, but you need Rs 13 lakhs to hedge just one lot.
- Eicher, Hero Moto, Grasim, BPCL, Tata Steel, GAIL are set to declare results from Nifty 50 pack.
- Expect a volatile session as there was not much volatility yesterday.
- Nifty future may trade between 11240 and 11380.
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