Pre Market Report, February 17, 2014 | Stocks and Commodities

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February 17, 2014
Time: 8.40 am

Pre Market Report:

1. Asian markets are up.
2. Japan GDP data came lower than expected and hence Japan markets are volatile swinging between positive and negative.
3. Other than that all other Asian markets are doing well.
4. SGX Nifty is trading about 20 points higher.
5. Though Vote on account is considered as non-event, some expectations are being build.
6. One, Gold import duty is expected to be cut by 2% which is good for jewellery stocks and Titan.
7. Excise duty is expected to be cut for commercial vechicles which will benefit Tata Motors and Ashok Leyland.
8. Tata Motors is already in the uptrend, any such positive news, Tata Motors will touch 400 again.
9. Rupee is expected to be strong below 62.
10. There will be more speculative activity after the vote on account as US markets are closed today.

Recommendation:

1. Sell Tata Motors 370 Put option and wait for the vote on account. If there is any excise duty cut for auto sector, then Tata Motots will touch 400. Then sell Tata Motors 420 Call option.