Pre Market Report 03-Sep-2024

Summary

US markets are closed, Asian markets are mixed, with the Nifty index slightly higher. Retail investors are puzzled by the missing $5 billion inflow, while HDFC Bank's performance disappoints. Nifty options show a rise in put premiums and a drop in call premiums, with aggressive selling of calls. The script discusses unusual premium movements, open interest, and resistance levels around 25500, suggesting a bullish view. Institutions continue buying despite market highs, indicating a strong trend. The speaker anticipates potential market movements and shares their current options strategy.

Takeaways

• 📈 US markets are closed, and Asian markets are mixed, with the Nifty index slightly higher.
• 🤔 Retail investors are confused about the missing $5 billion inflow.
• 📉 HDFC Bank's performance is disappointing, affecting the overall market sentiment.
• 🔍 Put premiums are increasing, while call premiums are decreasing, indicating a bearish trend.
• 📊 Option writers are aggressively selling calls, suggesting a belief in a potential market downturn.
• 📉 Nifty future is experiencing a significant drop in premium, wiping out 80 points in a single trading session.
• 🔑 The highest open interest is at the 25500 call option, which could indicate resistance at this level.
• 💹 Despite the premium depreciation, domestic institutions continue to buy, which is unusual at all-time highs.
• 📍 The support level is estimated to be between 25,000 to 24,950, with resistance around 25,500 to 25,550.
• 📌 The speaker maintains a bullish view, suggesting that the trend is still up and advises traders to follow the trend.

Q & A

What is the current status of the US markets mentioned in the script?

The US markets are closed for the day.

How are the Asian markets performing according to the script?

Asian markets are mixed.

What is the confusion among retail investors as per the script?

Retail investors are confused about the whereabouts of a $5 billion inflow.

What is the performance of HDFC Bank as mentioned in the script?

HDFC Bank is disappointing.

How are the option premiums behaving according to the script?

Put premiums are increasing while call premiums are decreasing.

What unusual activity is observed in the Nifty future premium as per the script?

The Nifty future premium wiped out 80 points in just a second trading session, which is unusual.

What is the highest open interest according to the script?

The highest open interest is at 25,500, but this is influenced by hedging and margin benefits.

What is the current resistance level for Nifty as per the script?

The resistance level is between 25,500 and 25,550.

What is the support level for Nifty mentioned in the script?

The support level is around 25,000 to 24,950.

What is the behavior of domestic institutions as per the script?

Domestic institutions are continuing to buy even at all-time high levels, which is unusual as they typically book profits.

What is the advice for traders according to the script?

The advice is to maintain a bullish view and follow the trend, as the trend is still up.