Pre Market Report, September 22, 2015 | Stocks and Commodities

September 22, 2015
Time: 8.40 am

Pre Market Report:

1. US markets closed in Green after few days of fall.
2. So Asian markets are all trading in Green.
3. SGX Nifty is trading closer to 8000, as we have out performed yesterday.
4. Highest ope interest is at 8000 among calls.
5. Highest open interest among Puts is at 7800.
6. In case if Nifty crosses 8020 and trades firmly, then Nifty may move to 8080 to 8120 by short covering.
7. 8100 is the Gap Down level of August crash, Nifty will face stiff resistance at that level.
8. There are no market moving news today.
9. Tomorrow China PMI data is due, that may influence the world markets.
10. On the other hand, RBI rate cut hope is building and banking stocks are out performing.
11. So the expectation is that, if there are no more bad news from Global front, markets will trade with slight positive bias until expiry and markets will move higher next week if RBI cuts rates and then selling may emerge towrads the end of next week.
12. But all these may happen with some choppiness due to expiry jitters.
13. With so much commotion and negativity, we are trading positive in the month of September as August expiry was at 7950.
14. But markets need about 4 to 6 months to stabilise.
15. I feel that market will test the low once again before December and then markets will start moving higher.
16. My suggestions about Maruti, Bharat Forge worked very well.
17. Auto ancillaries coming under pressure after a big bull run.
18. One can consider selling Maruti 4000 Put option in October expiry whenever there is some fall in Maruti share price.
19. Maruti is likely to take support at 4000 even if Nifty falls below 7500.
20. Another advantage in selling options is that you have the time value on your side.
21. Today Nifty is likely to trade between 7960 and 8020.