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Pre Market Report, September 18, 2013

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September 18, 2013
2 comments
P R Sundar, Aditya Trading Solutions
September 18, 2013
Time: 8.20 am

Pre Market Report:

  1. US markets closed positive.
  2. FIIs bought Rs 300 crore worth of shares in cash market. No significant buying in F&O market.
  3. Volume is very less as nobody want to take position ahead of FOMC meeting. That adds to the volatility.
  4. SGX Nifty is trading flat with positive bias.
  5. Crude oil and Gold prices are down.
Recommendation:

  1. Now volatility is ruling at around 30. By the end of this week it will come down at least by 20%. So to capitalise this, sell October expiry Nifty 5000 Put option and 6500 Call option, both are trading around Rs 25. Total remium is around Rs 50. By next week the otal premium will come down to Rs 30.
  2. Sell Bank Nifty 9000 Put option and 11500 Call option, both are trading around Rs 25.
Written By

Options Trader and Trainer

Comments

  1. Pranav18 September 2013 at 09:06

    Dear Sir, Hope you are doing well. I don't understand stocks well. However, looking at overall macro-economic situation and issues with CAD, low IIP, high inflation, how comes stock market continue to hover around 6000 & 20k on Nifty & Sensex?

    Thanks,
    Pranav

    ReplyDelete
    Replies
    1. P R Sundar18 September 2013 at 12:04

      Hi,
      Nice to see you after a long time. As you said, it is difficult to understand stock market. Whatever you know, everything has been priced in. We do have problems. That is why the market is trading around 6000 which was same as in the year 2008. For the last 6 years, markets have not gone anywhere.
      Thanks.
      - P R Sundar

      Delete

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