Pre Market Report, February 6, 2014 | Stocks and Commodities

Sponsored by

February 6, 2014

Time: 8.30 am

  

Pre Market Report:

1. US markets fell once again, but the fall was moderate.
2. Asian markets are trading positive.
3. SGX Nifty is trading about 15 points higher.
4. Yesterday, ADP Payroll data that came from US was not good.
5. That raises the hope that Fed tapering will not be aggressive in the coming months.
6. Also Cognizant declared good results.
7. As we have reported earlier, the markets may not fall and may not rise, they will be range bound.
8. ACC and Bank of Baroda will declare results. Auro Pharma, City Union Bank and Aban are some mid cap and small cap companies that will declare results today.
9. Anil Ambani companies will also start declaring results from today.
10. Rupee is expected to be stronger.
11. Nifty future is expected to take support at 6020.
12. Resistance will be at 6080.

 Recommendation:

1. Sell Auro Pharma 550 Call option and 440 Put option. This is a high risk trade as the comapny declares the results today. The results are expected to be good. You need to have lot of surplus cash to sell additional put options if the share shoots up or to sell additional call options if share price falls.