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Pre - Market Report (16th April 2020)

  1. U.S Markets were down 1.5% Yesterday
  2. All Asian Markets are also Trading Negative.
  3. SGX Nifty Currently trading 1% Negative.
  4. Retail Investors are behaving Smart. They are selling at higher levels and buying at lower levels.
  5. From last 10 Days DII's have sold more than 7000 Crores.
  6. Retail Shareholding in HDFC Bank has also increased Significantly
  7. Number of retail shareholders in December 2019 quarter was 8.7 lakh whereas March 2020 quarter was 12.5 lakh, a jump of 40-45%
  8. Yesterday was a bit Unusual. All Nifty 50 Quality Stocks fell. In last wave of selling all Quality Stocks fall.
  9. It would be fair to say that Investors should not expect any returns in Year 2020.
  10. Corona Virus Pandemic will leave us with many Unsolved issues. (If this ever leaves)
  11. Government has Announced that Few Selected Activities would be allowed after April 20.
  12. These include Farming , E-commerce , Fisheries etc.
  13. Yesterday despite the Market falling so quick Put Option Premiums were not rising Proportionately due to Falling VIX.
  14. Today is Weekly Expiry & decay in Option Premiums would be faster.
  15. Option Buyers are advised to Trade in "23rd April" expiry Options. 
  16. Time is in your Favour when you trade higher timeframe options specially on the days on Expiry.
  17. Expecting a Rangebound Market today as well with Slight "Negative Bias"
  18. Nifty is likely to Expire between 8700 & 9100
  19. 9300 Level on Nifty would act as a Big Resistance. 
  20. We fell 3-4% Yesterday from that Zone very Rapidly.
  21. So today its likely to be "SELL ON RISE" market. 
  22. Rallies closer to 9000 & 9100 could be sold into as risk reward turns in your Favour at these levels.
  23. PSU Banks & PVT Banks , Cement Stocks look Weak and can be used for Short levels for Intraday Basis.
  24. Markets not reacting to any Incremental News related to Corona Virus front.
  25. So don't link such News to Market and specially not for Trading.
  26. Sold 8600 Nifty PE & 9200 Nifty CE Yesterday.
  27. Sold 17000 PE &21000 CE on Bank Nifty Yesterday
  28. Will Square off / adjust Positions related to Market Movement Accordingly and will continue to focus on Option Selling today.
  29. Option Buying may Emerge in 2nd half as it Emerged Yesterday. So be Watchful for those as well.
  30. Consult your Financial Advisor & Trade on your own risk


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