Pre Market Report, March 3, 2015 | Stocks and Commodities

March 3, 2015
Time: 8.40 am

Pre Market Report:

1. US markets closed at all time high once again.
2. SGX Nifty started with positive bias, now trading slightly negative as China markets are down by more than 1%.
3. There is every reason to believe that markets will consolidate. Highest open interest among Calls is at 9000.
4. So decisive trading above 9000 is required for the markets to break out.
5. Again there are no key triggers for that to happen.
6. Now the budget is over, BJP will find going tough as there will be opposition to pass the key bills regarding Insurance, Land acquisition, etc. It is necessary that these bills are passed otherwise ordinance will expire.
7. Though Nifty 9000 Call has the highest open interest, Option sellers are still sitting with profits as India VIX crashed more than 20% in two trading session.
8. For example, in the last two weeks, Nifty shot up by 200 points, still 9000 Call is trading lower.
9. On the other hand, option sellers would have made huge money in Put options.
10. Though BJP may face stiff resistance in passing the bills, as a last resort, BJP may call for a joint session of the parliament.
11. So, in my view, Nifty is likely to trade between 8800 and 9200 for one or two more weeks.
12. Then closer to expiry, expectation of RBI rate cut will come into play.
13. Today Nifty future is likely to trade with volatility as there may be profit booking every now and then as markets are up significantly in the last few days.
14. Nifty future should take support at yesterday's low of 8944 and resistance will be at yesterday's high of 9033.