Pre Market Report, September 17, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

September 17, 2013
Time: 8.15 am

Pre Market Report:

1. US makets rose initially but the momentum was lost towards the end of the day.
2. All Asian markets are trading lower.
3. Our market inched towards 6000, then the profit booking came.
4. Although WPI inflation data was cited as the reason, actual reason was just profit booking after a huge run from 5100 to 6000.
5. If inflation was the reason, bank stocks should have fallen. But banking stocks rose yesterday.
6. From today until Friday, markets will be too volatile due to Fed Tapering news and RBI policy.
7. Once these two issues are over, markets will stabilise and VIX will fall.
8. Oil prices and gold prices are stable, that is good for India.
9. FII buying in both cash and F&O markets were nothing to talk about.
10. European futures are trading negative.

Recommendation:

1. Markets will be too volatile. If Nifty crosses 5900, sell Nifty 6100 Call option and if Nifty comes below 5800, sell Nifty 5600 Put option.
2. Sell Bank Nifty 11500 Call option if Bank Nifty trades above 10450. If Bank Nifty goes below 10200, sell Bank Nifty 9000 Put option.
3. Sell ICICI Bank 1100 Call option if it trades above Rs 5.50.