Pre Market Report, December 19, 2013 | Stocks and Commodities

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December 19, 2013
Time: 8.15 am

Pre Market Report:

1. US markets shot up to close at all time high.
2. Fed has gone for "Taper Light" policy where the Fed tapering is very minimal.
3. Now that both key events gone, Volatility will go down.
4. By the end of the the day option premiums will collapse.
5. Even for medium term Fed Taper issue is over and US Budget deal is over.
6. So the bull run may resume in our markets.
7. But the rally will gather momentum slowly as next week expiry will bring some volatility.
8. Next week is only three days week until expiry.
9. Due to Christmas, many FIIs will be away from the market.
10. All Asian markets are up.
11. SGX Nifty is up by about 50 points.
12. Nifty future will gather momentum if it crosses 6220 and trades firmly.

Recommendation:

1. Sell Nifty 6200 Put option and 6500 Call option.
2. High risk takers, Sell Bank Nifty 11000 Put option and 12200 Call option.