Pre Market Report, November 28, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

November 28, 2013
Time: 8 am

Pre Market Report:

1. US markets hit all time again again.
2. Ahead of 4 day weekend, people expected some profit booking in US, but that did not happen.
3. This is a sign of very strong market in US and that will bring positive sentiment to all other world markets.
4. As there are no data due in India and global cues are strong, our markets downside should be limited.
5. But upside also seems to be limited due to huge selling by DIIs.
6. Most markets are trading at recent highs, our market is clearly 6% down from the recent high.
7. SGX Nifty has registered high of 6134, may be that is a freak trade.
8. SGX Nifty is trading closer to 6100.
9. Rupee is also stronger.
10. But expiry day trade will be volatile and unpredictable.

Recommendation:

1. Sell Nifty 6000 Put option and 6200 Call option at the opening, within one minute. Again the premium will be very low. Consider brokerage charges and other charges.
2. If Nifty crosses 6120 then sell 6050 Put and if Nifty falls below 6080, then sell 6150 Call. SInce the market will be very volatile, prepare to sell additional calls or additional puts as market moves.