Pre Market Report, January 23, 2014 | Stocks and Commodities

January 23, 2014
Time: 8.15 am

Pre Market Report:

1. Better than expected ECB bond bond buying program lifted the sentiment all over the world.
2. European markets were up by more than 1%.
3. US markets were up by about 1.5%.
4. All Asian markets are up.
5. SGX Nifty is up by about 80 points at this point of time.
6. Short sellers will be trapped by the huge gap up opening.
7. At the same time, only at the money and near out of money call option buyers will make money.
8. Put buyers will loose heavily and deep out of money call buyers also may loose a little as VIX is expected to crash.
9. Nifty is on its course to test 9000 before budget.
10. Auto and Banking stocks will be on fire.
11. Nifty may find support at yesterday's close in today's trade.
12. Nifty will find resistance only at 8920.
13. Note: I sold 8200 Put and 8800 call few days before. Once Nifty broke out of all time high of 8626, I sold 8300, 8400, 8500 and 8600 Put. Then one day later I sold 8700 Put. Yesterday I sold 8800 Put. So still I do not loose. But if anyone has done this without buffer cash to pay MTM losses and to create more positions would have lost heavily.