Pre Market Report, February 14, 2014 | Stocks and Commodities

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February 14, 2014
Time: 8.15 am

Pre Market Report:

1. US markets rose after starting negative.
2. Most Asian markets are up.
3. Yesterday our markets fell despite good news flow and FII buying.
4. Market is down for the week and hence there may be some short covering by traders towards the end of the day ahead of week end.
5. SBI results will bring volatility to Bank Nifty.
6. DLF and M&M are other key results today.
7. All three results are from three different high beta sectors.
8. Our expectation is that markets will be choppy in the first half and some up move towards the end.
9. SGX Nifty is trading at 6035.
10. If Nifty future crosses 6050, then only short covering will come as most of the shorts are just below 6050.
11. Today Nifty support is at 5980.
12. Resistance will be at 6080.

 Recommendation:

1. Auro Pharma is facing resistance beyond 500. 
2. Due to good results, it is finding support around 480.
3. After today, there are only 8 more trading sessions for this expiry.
4. We expect Auro Pharma to trade between 450 and 550.
5. So sell Auro Pharma one lot of 450 Put option, one lot of 550 Call option and one lot of 560 Call option.
6. Note: This is high risk - high reward strategy, suitable only for those who have extra money to sell additional put or call options.