Pre Market Report, November 27, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

November 27, 2013
Time: 8.10 am

Pre Market Report:

1. US markets are struggling at higher levels.
2. Nasdaq closed above 4000 after 13 years.
3. Yet another record close for Dow Jones Industrial Average.
4. But things are not looking good here.
5. Yesterday was the first day after a long time, both FIIs and DIIs have sold.
6. So negative sentiment will prevail at least until the end of expiry.
7. Asian stocks are mixed.
8. SGX Nifty is trading about 20 points lower.
9. We reported yesterday that 6000 to 6200 is the range until expiry.
10. Now the range is shifted to 5950 to 6150.

Recommendation:

1. Sell Nifty 5950 Put option and 6150 Call option.
2. If Nifty future falls below 6000, then sell 6100 Call option additionally.
3. In case if Nifty futures fall below 5970, then cut 5950 Put and sell 5900 Put option.
4. Even in the worst case scenario, Nifty will settle above 5900.