Pre Market Report, November 21, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

November 21, 2013
Time: 8.45 am

Pre Market Report:

1. Good news come one by one but bad news come together.
2. When the markets go up it goes up by staircase when it comes down it comes down by lift.
3. Yesterday just one day, FII did not make big purchases.
4. But a small selling by DIIs brought the Nifty by more than 100 points in less than 45 minutes.
5. Then came FOMC meeting minutes which says the Fed tapering is possible in the next few meetings.
6. Then today morning, Chinese manufacturing PMI came lower than expected.
7. So the market down turn will continue.
8. But it should not fall too much from here.
9. We have reported in the "November outlook" that Nifty will be in the range of 6000 to 6600.
10. It is trading in the lower range and even now, Nifty will take good support at 6000.
11. Today Nifty future should take support at 6080, failing which next support is at 6020.

Recommendation: 

1. Sell Nifty 5850 Put option and 6300 Call option.