Pre Market Report, September 29, 2020 | Stocks and Commodities

September 29, 2020

Time: 8 am

 Pre Market Report:

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2. US markets closed firmly in Green.
3. But Asian markets are mostly flat.
4. Even SGX Nifty is also flat.
5. Nifty has seen a huge rally of 450 points in 2 trading sessions.
6. So it is good if it consolidates.
7. Remember, first Monday of September series, Nifty fell from 11800 to 11350.
8. First Monday of October series, Nifty shot up from 11050 to 11250.
9. So October series is likely to be as volatile as September series.
10. RBI policy has been postponed.
11. That reduced IV in Banking Stocks.
12. Interest on Interest Case also postponed to next Monday.
13. So next week, along with these, US Stimulus out come may also be known.
14. So next week, markets can make big moves.
15. Nifty took 11200 comfortably and now 11300 will be a resistance.
16. That is because 50DMA is around 11300.
17. Yesterday it was all about Banks, Autos and Metals.
18. Reliance has under performed.
19. FIIs have sold for just Rs 27 crores.
20. But DIIs bought for Rs 542 crores.
21. FIIs have stopped selling, after selling a minimum Rs 2000 crores everyday for the last 4 days.
22. IndusInd Bank moves 7, 8% almost everyday either on upside or down side.
23. Bank Nifty turned around after falling nearly 5000 points.
24. So I am selling Far OTM Put options.
25. Since FIIs have stopped selling, I am also planning to sell 10500 and below Puts in Nifty.
26. India VIX is down by more than 5%.
27. Now it is below 20.
28. If that continues, then markets may not show huge moves.
29. Gradual move on either side is not a problem for option sellers.
30. We may see resistance around 11300.
31. Support may come around 11180.