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Pre - Market Report (18th March 2020)

  1. US markets moved more than 4% positive or negative for 6 consecutive sessions in 1929 Great Depression.
  2. Yesterday it moved 4%, for the 6th consecutive session & now DOW futures are down more than 4%.
  3. This crisis is bigger than 2008 Financial crisis.
  4. SGX Nifty is trading between 9000 and 9100.
  5. In three trading sessions, FIIs have sold for US$2 billion.
  6. That is a huge selling.
  7. DIIs are actively supporting the markets.
  8. Option premiums are very high as India VIX keep increasing.
  9. Nifty 7700PE, least strike available, trading around Rs 40 even for tomorrow expiry.
  10. Bank Nifty 20100PE, least strike available, trading around Rs 290 for tomorrows expiry.
  11. I do not remember seeing this kind of premiums even in 2008. People are BEARISH to their neck.
  12. But in F&O, data looks encouraging as FIIs are covering their short positions, writing puts.
  13. As of now, SGX Nifty down suddendly to 8900.
  14. Continue to watch DOW futures, if that goes to lower circuits, more panic will come in India.
  15. On any bounce, time to unwind long positions.
  16. We may be in for a prolonged bear market.
  17. Things may change if Corona Virus disappears but this may take lot of time.
  18. Until then it's better to be Cautious & On any bounce, sell Call options, in small quantities.
  19. Yesterday we held 9000 levels on Nifty for 3/4ths of the day but in last 30 mins huge selling pressure led to break down of 9000 on Nifty. More Weakness likely to appear on both the Indices.
  20. Corona Virus is a Big issue that whole World is facing now & problems will keep Accentuating in near future.
  21. Rather than Banning Short Selling , advice for SEBI would be to reduce Trading hours.
  22. In 2008 , all the Indices fell by more than 50% , Nifty is down 30% from all time highs.
  23. If this is 2008 or much worse than 2008 , we can witness Trading near 7000-6500 levels in coming Future.
  24. I have just been selling Call Options for now.
  25. Premiums are attractive & being Expiry Tomorrow the decay will be very Quick.
  26. I do not see any better way than Selling Call Options in these Kind of Volatile Markets 
  27. India has 140 reported Cases of Corona Virus whereas U.S has 5000 reported Cases of the Same. Being the 2nd most Populous Country having just 140 cases creates uneasyness.
  28. With only 13 lakh people tested we needs to improve our Testing Mechanisms so that we tackle this Immediately or this can cause a scare in coming time.
  29. Upcoming 2 Weeks are highly Crutial for India. Trend shows that Corona Virus is at its Peak in 4th & 5th week & India is Approaching into the same.
  30. Just read some reports and got to know that after Development of VACCINE it takes atleast 3 Months to test the same. So Vaccine Cure for Corona Virus is a long way ahead.
  31. 8600 is the next Support on Nifty & it's just a matter of time it gets taken away.
  32. Try to sell into Rallies / Pull Backs they will come. Selling into a 200-300 Points gapdown creates high risk.


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