Pre Market Report, September 7, 2015 | Stocks and Commodities

September 7, 2015
Time: 8.45 am

Pre Market Report:

1. US markets closed lower on Friday after mixed reports on employment and wage reports.
2. China opened after two days of holidays.
3. As usual, China is highly volatile.
4. SGX Nifty is also swinging widely, went down to 7580 and then shot up to 7676, then falling to 7620.
5. Now it is trading around 7640.
6. But VIX is so high, the fear is very high now.
7. FIIs are buying Puts at any price, so the premiums are very high.
8. This is likely to continue until 18th September.
9. Who knows, Markets may hit lower circuits on September 18, if Fed raises rates.
10. Dow future is trading positive.
11. Any up move should be used to exit long positions.
12. Or at least buy protection.
13. What FIIs are doing, selling 8000 to 8200 Call options as the possibility of Nifty going beyond 8000 is very remote and using the money collected, they are are buying Put options.
14. No matter how much Nifty falls they are protected.
15. Nifty should find support at 7580, failing which Nifty will slide towards 7200 in the next few days.
16. Upside is very very limited as every one is waiting to sell when markets move higher.