Pre Market Report, September 16, 2015 | Stocks and Commodities

September 16, 2015
Time: 8.35 am

Pre Market Report:

1. US markets closed significantly higher.
2. This is surprising ahead of Fed meeting.
3. Our markets fell yesterday as expected.
4. As usual it was volatile.
5. Nifty future visited 7888 once again and then fell.
6. Today it will make one more attempt.
7. SGX Nifty hit a high of 7920 and now trading around 7890, still higher than the high visited in the last few sessions.
8. Surprisingly VIX has come down yesterday.
9. Our markets are closed tomorrow so we will have to react two days of reaction in other markets.
10. That too just after such a big event like Fed meeting.
11. I thought VIX will shoot up.
12. It is likely to shoot up towards the end of the day, if not in the morning.
13. Chances of Fed hike is only one third, according to derivative data.
14. So people may be taking a risk.
15. Yesterday Call options fell, but put options did not rise correspondingly. Check Dec 7000 Put and 8500 Call. 8500 Call fell Rs 18, even 9000 Call fell Rs 9, but 7000 Put was up only by Rs 3.
16. I am not talking about put options of near strikes as this is volatile period we need to keep far away options only.
17. Yesterday FIIs have sold for more than Rs 900 crores whereas DIIs have bought for less than Rs 500 crores.
18. From August 18, there was only one day FIIs were on buy side that too the buy figure was less than 100 crore. Otherwise, they keep selling everyday.
19. Today's gap up may be used to lighten the long positions ahead of Fed meeting.
20. One may consider selling 4000 Put option in Maruti, keeping appropriate stop loss. As there are only 6 more trading sessions including today, Maruti is not likely to fall below 4000. Anyway VIX will fall after the Fed meeting and premiums will fall.
21. One may sell Bharat Forge 1100 Call option as an hedge for Maruti position.
22. Nifty future is expected to trade between 7920 and 7820.