Pre Market Report, January 19, 2014 | Stocks and Commodities

January 19, 2014
Time: 8.30 am

Pre Market Report:

1. All Asian markets are up except China.
2. China has banned top 4 broking firms from margin funding for next three months due to some irregularities.
3. So China market opened 6% lower and stabilising at 4.5% loss.
4. Usually India reacts to any negative news from China, particularly metal stocks.
5. So SGX Nifty is trading about 30 points lower than its high of 8608 reached on Friday night.
6. But still it a decent 50 to 60 points higher than Friday's close here.
7. Markets will react to Reliance results today.
8. Auto stocks and Banking stocks will be in focus as Petrol and Diesel price cut will have positive impact on these two sectors.
9. HUL will be in focus ahead of results. Unless the results are extraordinary, HUL is not likely to move significantly higher as the run up in the last few weeks has been very good.
10. I have sold 1020 Call option in HUL expecting the HUL not to cross 1000 by the end of expiry.
11. Crude and commodity prices are stabilising and that may trigger short covering in energy and metal stocks, if the overall market sentiment is good.
12. Nifty future is expected to trade between 8560 and 8650.
13. One may sell both 8200 Put option and 8800 Call option. There are only 8 trading sessions to the expiry.
14. Also volatility is expected to go down in the next few days. However one has to be careful about the ECB outcome and Greece election outcome.
15. Please do not create positions just based on my blog. You should know how to come out in case if markets move against you, like delta hedging. Also you need money power to balance your positions.