Pre Market Report, March 11, 2015 | Stocks and Commodities

March 11, 2015
Time: 8.45 am

Pre Market Report:

1. US markets fell drastically, Dow fell more than 300 points.
2. It was one day up and one day down (of more than 100 points) for US markets.
3. But surprisingly Asian markets did not not react negatively.
4. Probably, people think that the selling is done, now the down side may not be more as US markets wiped out entire gains made in 2015.
5. Many Asian markets are trading positive.
6. SGX Nifty 8755 at this point of time which is just 10 to 15 points lower than yesterday's close here.
7. After the markets closed in US, US futures are also trading slightly higher.
8. There may be some news with regards to Greece for this turn around.
9. As I have mentioned earlier, markets are likely to consolidate for next few sessions.
10. Then markets will look for new clues like IIP data, Inflation data, etc.
11. In my opinion, markets will be in consolidation mode, between 8500 and 9500 for next few months as there are no big positive or negative triggers for the rest of this year 2015.
12. On one side positive local cues and on the other side negative global cues from US and Greece will balance out and markets will move is sideways mode.
13. One can consider selling Nifty 7500 Put expiring in December 2015 if Nifty trades closer to 8500 and Nifty 10500 Call expiring in December 2015 if Nifty trades above 9000.
14. This strategy is good for passive investors. This can give a decent annualised return of about 50%.
15. Today Cairn India will be in focus due to Tax issue and Maruti will be in focus due to Alto recall issue.
16. Nifty future is expected to trade between 8700 and 8820 with volatility.