Pre Market Report, November 12, 2013 | Stocks and Commodities



P R Sundar, ADitya Trading Solutions

November 12, 2013
Time: 8.15 am

Pre Market Report:

1. US markets creating history almost everyday.
2. Here we are falling every day.
3. DII selling is so aggressive that they are selling almost 900 crors every day.
4. This is due to redemption pressure in mutual funds.
5. For more details, please read my article in NANAYAM VIKATAN this week, titled உச்சத்தில் பங்குச் சந்தை.
6. But Nifty is trading at support level.
7. This is evident from the difference between cash price and futures price which is around 60 points.
8. Most Asian markets are up.
9. Today after the market hours, IIP data, inflation data are due. China is set to unveil its economic reform agenda for the next decade which could be a turnaround point.
10. Nifty is trading 250% higher than 2008 low whereas Chinese stocks are not even trading 10% higher than their 2008 low.
11. Chinese stock market is the worst performer in the last 6 years.
12. So it is possible that they come out with some aggressive reform ideas, which could be a boost for all markets.
13. Also SBI results tomorrow will a key event to watch.
14. So today may be another lackluster trade, but tomorrow trade will be an interesting one.

Recommendation:

1. Sell Rcom 115 Put and 160 Call which closed at Rs 0.55 and Rs 0.90.
2. Sell Reliance Capital 320 Put and 400 Call which closed at Rs 3.05 and Rs 3.10.