Pre Market Report, November 25, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

November 25, 2013,
Time: 8 am

Pre Market Report:

1. US markets closed at record high on Friday.
2. US - Iran deal yesterday adding to the positive sentiment in Asia today.
3. Due to this deal, Europe and US futures are trading positive.
4. Due to this deal, crude is trading 2.5% lower which is good for India.
5. If crude continues to fall towards US$100, that will be very good for India.
6. Most Asian currencies have appreciated and hence Indian Rupee is also likely to appreciate.
7. Markets will be volatile with positive bias.
8. SGX Nifty is trading at 6060, which is about 30 points higher than the Friday's close here.
9. FII selling so far is very little.
10. Hence between now and Thursday there can be some short covering rally of about 100 points in Nifty.

Recommendation:

1. Axis Bank is replacing JSPL in Sensex. So all index funds will have to buy Axis Bank. So the sentiment will be positive in this stock. You may consider selling 1050 Put option and if Axis Bank rise significantly from here, then consider selling 1200 Call option as Hedge.