Pre MArket Report, October 25, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

October 25, 2013
Time: 8.15

Pre Market Report:

1. US markets rose.
2. But most Asian markets are down, due to earnings disappointment and profit booking.
3. SGX Nifty also trading about 30 points lower.
4. Crude trading below $110 is positive for India.
5. FIIs continue to buy for huge amount.
6. Nifty 6250 and 6350 is a huge resistance zone.
7. So lot of consolidation is required to cross this zone.
8. Also as long as Nifty is volatile, redemption pressure will be high in mutual funds and hence DII selling will continue.
9. Today Nifty will have support at 6120 and if that is broken then next support is at 6080.
10. Friday's afternoon trade will always be difficult to predict.

Recommendation:

1. Sell Nifty 5900 Put. If Nifty crosses 6180 by any short covering then sell Nifty 6400 Call option.
2. Sell Bank Nifty 10000 Put option and 11700 Call option.
3. Sell SBIN 1600 Put option and 1850 Call option.