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

P R Sundar, Aditya Trading Solutions

October 23, 2013
Time: 8.15 am

Pre Market Report:

1. US Payroll data disappointed and hence Fed tapering will be delayed.
2. So FIIs will continue to pump in money in Indian stock market and our markets will do well.
3. US markets also rose yesterday.
4. Most Asian markets are doing well.
5. SGX Nifty hit a high of 5292 yesterday night.
6. Now SGX Nifty is trading at 5240.
7. We advise to sell Put option on every dip.
8. Yesterday DII selling was more than FII buy, yet markets did not go down.
9. Nifty will be trading between 6200 and 6250 and then suddenly will break out and will cross 6300.
10. Markets will be volatile as DII selling continues.

Recommendation:

1. Sell 6000 Put or 6100 Put depending upon your risk profile, Nifty is not likely to go below 6100.
2. Also time value will be in favor of option sellers as there are only 6 more trading sessions excluding today.
3. If you are selling 6100 Put, then sell 6500 Call also.
4. Sell Yes Bank 340 Put option.