Pre Market Report, September 23, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

September 23, 2013
Time: 8 am

Pre Market Report:

1. FIIs bought over Rs 6000 crore on Thursday. (both Cash and F&O put together)
2. FIIs again bought over Rs 2500 crore on Friday.
3. Yet the market was so volatile and waiting to gap down open of around 75 points in Nifty as per SGX Nifty.
4. Sometimes markets are irrational.
5. But there may be short covering rally before this month expiry.
6. US markets fell but that is because of expiry related issues.
7. China PMI has exceeded estimates once again.
8. Merkel's win in German election is also positive for European markets.
9. As we have been mentioning, this time the problem is not global one. US has stabilised, Europe and China are stabilising, Japan is doing well.
10. This time problem is restricted to Emerging economies that too with high CAD.
11. So these problems will be forgotten if the global cues continue to be good.
12. Today, Nifty future should hold on 5980 after 30 minutes of trade, otherwise, Nifty will head towards 5920.
13. Nifty is expected to trade between 5880 and 6120 until expiry.

Recommendation:

1. Sell Nifty October Expiry 5000 Put option if it trades above Rs 15.
2. Sell Rel Infra 440 Call option.