Pre Market Report, September 15, 205 | Stocks and Commodities

September 15, 205
Time: 8.35 am

Pre Market Report:

1. US markets closed negative.
2. But Asian markets are mixed.
3. Our markets out performed yesterday as WPI inflation data came much lower than expected.
4. Though large caps are doing badly due to FII selling, midcaps are doing well.
5. Yesterday as usual our markets were volatile, Bank Nifty fell more than 100 points and then shot up 400 points from intraday low.
6. Nifty also shot up more than 120 points from intraday low.
7. It seems that 7900 will be a big resistance.
8. Nifty retraced after crossing 7880 twice.
9. SGX Nifty as usual is volatile, hit a low of 7810 and hit a high of 7886 and now trading around 7860.
10. Yesterday for the first time FIIs were on the buy side in cash market.
11. Anyway, markets are likely to see profit booking either today afternoon or tomorrow.
12. Markets do not close firm ahead of such key events in US, if that happens policy makers will hike rates.
13. For the first time in the last many years, people want Fed to hike rates in order to get over the volatility.
14. Maruti will be in focus as FII limit has been increased.
15. We have to see how banking stocks perform after a good rally yesterday.
16. CPI inflation was not that good and hence banking stocks may come under profit booking.
17. Bank Nifty has already recovered more than 1000 points from its low this month.
18. One thing will be sure, Volatility will go up by tomorrow afternoon and then on Friday, volatility will come down, no matter whether markets rise or fall.
19. I am giving a strategy to make some money. Markets are likely to move significantly, either upside or downside. And VIX is likely to fall on Friday. So Buy 7800 Call option and Put option in Nifty and Sell October 7300 Put option and 8300 Call option and then Sell December 7000 Put option and 8500 Call option. Let us see how this strategy works. All positions must be taken with proper stop losses. When you exit when stop loss is hit, you have to exit the pair, not one sided position.
20. Today Nifty is expected to trade in yesterday's range of 7765 and 7890.