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Pre - Market Report (26 Feb 2020)

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Pre Market Report:


  1. US markets fell another 3% Yesterday.
  2. On Monday it fell by 3% and Tuesday another 3%, total 6% fall in two days.
  3. Last time this has happened only in 2015 and 2008.
  4. CDC (Center for Disease Control) warning spooked the markets.
  5. Asian markets are down.
  6. SGX Nifty is down by about 100 points.
  7. FIIs have sold for Rs 2315 crores in Cash market.
  8. However they seem to be covering their shorts in F&O.
  9. Since there is very little premium in next month contract and markets are near bottom, they may not like to rollover their shorts.
  10. They may choose to square up the shorts and that may cushion the fall.
  11. Earlier I mentioned (To Clients) if 11900  support is broken, Nifty is likely to take support at 11700.
  12. Markets are likely to be highly volatile.
  13. DIIs are expected to support the markets at lower levels.
  14. Somehow I feel Corona Virus fear is at its peak.
  15. The risk reward is not favourable to go short at this time.
  16. At the same time, going long is also not advisable , wait for the Markets to bottom out , to Exhaust at lower levels & then go long.
  17. VIX in US is above 25 while it is still below 17 in India.
  18. Autos and metals are highly Underperforming as Macro issues dampening their rally.
  19. Reliance also has been under performing.
  20. Any recovery, we can expect only in next series.
  21. Usually, whenever markets are so weak , expiry happens somewhere near the low end of trading range.
  22. Last one month trading range for Nifty has been 11600 to 12400.
  23. Im looking to sell more & more Call Options today as Tomorrow is Expiry and Premium decay is much Faster.
  24. Earlier I sold 12100 and 12200CE which I rolled down to 11900, 11950, 12000CE yesterday.
  25. On any bounce on Nifty I plan to sell 11850CE today.
  26. I am not expecting any big recovery, I am expecting Nifty to expire below 11850.
  27. For Bank Nifty I sold 31000CE day before yesterday and sold 30800CE yesterday.
  28. HDFC Bank has been weak as Aditya Puri sold his shares. ( Trading below 200 DMA)
  29. Nifty future should take an Interminnent  support at 11700. If 11700 Breaks doors open the way to Budget day low ie, 11600 for Nifty .Resistance may come at 11820.
  30. Look for Shorting Opportunities only at Rallies / Bounces on both Nifty & Bank Nifty as going short when Market is already down doesn't match risk & reward in your Favour. We are in a Sell on Rise Market as on Today.

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