Pre Market Report, October 31, 2013 | Stocks and Commodities

October 31, 2013
Time: 8.20 am

Pre Market Report:

1. Fed policy was in line with market expectation.
2. US markets fell as "Buy on rumor and sell on news" played out.
3. SGX Nifty is also trading about 10 points lower.
4. FIIs bought for more than 1000 crores yesterday.
5. DII selling was less aggressive.
6. By looking at all these, Nifty is likely to expire between 6200 and 6300 today.

Recommendation:

1. Sell 6150 Put and 6350 Call at the opening. This is a very low return strategy. One may gain Rs 3 to 4 only, that translates into Rs 150 to 200 per lot. But this is intraday trade, so the margin requirement will be very low. Also you need not square up at the end of the day, so that you can save brokerage and other charges on one side.