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Pre - Market Report (1st April 2020)

  1. US markets closed 2% lower Yesterday.
  2. Asian Markets are almost flat.
  3. Coming few weeks are highly Critical related to Corona front. Both in U.S as well as in India.
  4. Yesterday , a good News came from China front that their PMI data for the Month of March has Increased. 
  5. This shows that Companies after getting out of Lockdown can expand their Business & create demand Immediately.
  6. The level of VIX shows the level of Panic. VIX is reducing Considerably both in U.S Markets as well as our Markets.
  7. Yesterday India VIX was down more than 10% . This is a good sign.
  8. SGX Nifty indicating a 1% negative opening as of now.
  9. Bank Nifty lot size for F&O Contracts will be Increased to 25 shares per lot from July onwards.
  10. Today is Weekly Expiry on Options so there might be some sharp Irriational rallies in 2nd half of the Trading Session.
  11. The Plan is to do just Option Selling today. As Time Value keeps reducing the Option Premiums & it's a low Volatile Market as compared to March series so Premium Eating might be an easy money job.
  12. I do Option Selling mostly in Bank Nifty and very selective in Nifty. Bank Nifty offers good movement so Option Selling on various Strike prices gives good returns.
  13. I exit my Positions by 3 pm because later on there are Violent Swings on Bank Nifty.
  14. 16000 PE & 23000 CE for 1st April will likely open at single digits so will exit this Immediately as soon as market opens.
  15. Will look to enter into fresh Straddles in Bank Nifty in range of 700-800 Points and in Nifty in range of 200-300 Points.
  16. Related to Equity Trading , keep your Focus on Stocks where there has been excessive short building during last Month. This can give short covering moves today.
  17. If lockdown is extended in India then we might test the level of 7500 on Nifty again.
  18. Option Buyers should again remain very Cautious today because there is not excessive Volatility as we used to Witness in March.
  19. Also I might eat away the Premiums. So it's better to trade in coming week Expiry Options. You get the Advantage of time.
  20. Tomorrow is a Holiday so again it's not Advisable to carry any sort of large positions over a Holiday.
  21. Friday , Monday , Tuesday & Wednesday ( first half) I focus on Option buying.
  22. Wednesday (Second half ) & Thursday ( Weekly Option Expiry day) I focus on Option Selling.
  23. Option Buying is also done on Wednesday & Thursday only in case of Trending Markets.
  24. Expecting the Expiry between 8300-8700 today on Nifty.
  25. Bank Nifty would be between 19000-20000.
  26. Be Safe than Sorry , follow Stoploss and Trade with a Plan.
  27. Stay Safe , Stay Home.


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