Pre Market Report, October 22, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

October 22, 2013
Time: 8.15 am

Pre Market Report:

1. US markets ended mixed ahead of pay roll data to be released today.
2. FIIs have bought more than 1000 crores for the fourth consecutive day which we have not seen in the past.
3. Liquidity is so high, once DII selling comes down Nifty will zoom.
4. At this point only one advise, on every dip sell Put options.
5. Yesterday Nifty future added 4 crore shares in the open interest, one of the higest in the recent history.
6. What we need now is the change in the leadership.
7. Last leg of the bull move was lead by IT and Pharma.
8. Bank Nifty is trading nearly 2500 points below its recent high.
9. If Bank Nifty starts moving up, then Nifty can easily cross 6500.
10. Today Nifty is expected to move sideways due to Pay roll data.

 Recommendation:

1. If Nifty future falls below 5200, then sell 6000 Put option.
2. As Bank Nifty is likely to outperform Nifty in the next two to three weeks, buy Bank Nifty and sell Nifty as pair trade. This is only for high risk takers. Keep the stop loss at Rs 5000.
3. Sell Wipro 450 Put option and 550 Call option. 
4. Sell Yes Bank 420 Call option and 300 Put option.