Pre Market Report, September 4, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

September 4, 2013
Time: 8.45 pm

Pre Market Report:

1. Markets are highly volatile, yesterday's fall was not expected by any one whether one is a technical person or fundamental person.
2. Initially it started with FIIs selling in FII counters like Axis Bank, Indus Ind Bank, HDFC etc due to the redemption pressure by foreign funds.
3. That has aggravated the depreciation of rupee and in turn that invited short sellers.
4. Then came the worst possible news that there were two missiles fired in the Mediterranean sea.
5. Markets assumed that it was fired by US and US strike against Syria started.
6. But it was actually fired by Israel, but with the help of US.
7. But the damage was done already in the market.
8. The rest of the September is going to be very volatile as actual Syria strike may happen next week as Obama is getting some kind of support.
9. That will be followed by most awaited FED policy news the following week.
10. One can expect the market to stabilise only at the end of September.
11. Until then either intraday and short term traders may keep away from the market or trade with tight stop losses.

 Follow Up:

1. Either exit all positions wherever you have profit and keep tight stop loss for the positions where you have some losses.
2. Alternatively, you may keep stop losses for all the positions.
3. Can just leave the call options as they are very far away.

 Recommendation:

1. Sell Mecdowell 1800 Put option and 2700 Call option simultaneously. This stock will move independent of Nifty and hence it is more safe.
2. Sell Lupin 780 Put option and 920 Call option simultaneously. This stock has ended positive despite such a fall but crossing 900 will be very difficult in this market condition.