Pre Market Report, September 16, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

September 16, 2013
Time: 7.30 am

Pre Market Report:

1. Good news for bulls, Summers is out of Fed Chairman race.
2. Janet Yellen is the most likely candidate, who favors easy monetary policy, reportedly easier than Ben's.
3. Nifty will open gap up 100 points as indicated by SGX Nifty.
4. Whether it will sustain there or not, it depends on profit booking. Friday, both FIIs and DIIs have sold in cash market.
5. 5. FIIs did not buy in F&O market also.
6. European futures are trading over one percent and that will boost sentiment in the afternoon trade.
7. Profit booking expected closer to 6000 level, that is actually high at SGX today.

Recommendation:

1. Market is overbought in the short term, but anything can happen on Thursday  and Friday due to Fed announcement and RBI policy. So sell Nifty 6300 Call option when the market crosses 5980 and if there is any profit booking and if Nifty falls below 5940 then sell 5700 Put option.
2. Sell Bank Nifty 12000 Call option and if there is any profit booking and Nifty falls below 5940 then sell Bank Nifty 9000 Put option.
3. Sell Mcdowell-n 2200 Put option and 2900 Call option.