Pre Market Report, November 6, 2013 | Stocks and Commodities

P R Sundar, Aditya Trading Solutions

November 06, 2013
Time: 8.15 am

Pre Market Report:

1. First, we are sorry, we could not write after market report yesterday.
2. As reported earlier, FIIs have slowed down the purchase.
3. But DIIs continue to sell aggressively.
4. We have expected this and that is why we said that we are expecting some correction between 100 to 200 points in Nifty.
5. Due to DII selling, market may come down and that will induce FIIs to buy more and markets will bounce back after this correction.
6. Today BHEL result is important.
7. BHEL results will show the health of Capital Goods Sector.
8. If Capital goods sector turns around, FMCG companies not doing well, then that is the first sign of bull market.
9. Yesterday US markets closed mixed.
10. Asian markets also trading mixed.
11. SGX Nifty is trading about 15 points lower.
12. Today also market is expected to be range bound with negative bias.
13. Despite 65 points fall in Nifty, Put options did not rise significantly.
14. This shows that market is reading this fall as a small correction, not break down.

Recommendation:

1. Sell BHEL 170 Call option and 110 Put option.