Pre Market Report, October 13, 2015 | Stocks and Commodities

October 13, 2015
Time: 8 am

Pre Market Report:

1. US markets closed in Green after trading both in Green and Red.
2. Asian markets are mostly down as Crude oil prices fell by 5%.
3. SGX Nifty is trading almost flat, and Bank Nifty has not moved significantly is the last 6 weeks.
4. Yesterday once again Nifty future fell below 8200 after touching 8247 which was vry close to previous day's high..
5. On Friday, IndusInd Bank results became a non event, IndusInd Bank fell slightly.
6. Yesterday, Infosys results became non event, Infosys fell slightly compared to the price traded the day before at 3 pm. Infosys shot up by about Rs 30 in the last half an hour on Friday.
7. I exited the Infosys 1000 Put and 1300 Call at a combined premium of Rs 7 against the combined selling price of Rs 15.
8. FIIs once again have bought in Cash market for about Rs 318 crores while DIIs have sold for Rs 175 crores.
9. Markets have been choppy between 8150 and 8250 for the last few days, but it seems that yesterday the markets have given an indication that 8250 in a very strong resistance.
10. Today evening TCS will come out with results.
11. I plan to sell 2350 Put option and 2850 Call option today.
12. After Infosys results, the expectation is very low for other IT companies now. Since the TCS 52 week high is 2812, selling 2850 Call is reasonably safe, 52 week low is 2345, so selling 2350 Put is also reasonably safe.
13. Positive News: FII buying in Cash Market, Good IIP data, Good CPI data.
14. Negative News: Bad Global Cues, Negative Sentiment in IT stocks, Crude Price Fall and hence negative sentiment in Oil and Gas Sector, Technical Resistance.
15. So once again, markets are likely to consolidate with choppiness between 8100 and 8200.
16. Now the range seems to have come down from 8150-8250 to 8100-8200.
17. As long as Nifty future is trading above 8100, the uptrend is intact and sooner or later, it will try to break 8250.
18. If 8100 is broken, then the slide will be faster and the range will become 7900 to 8200 for Nifty until the expiry.
19. Yesterday morning there was some buying in Private sector banks but that was sold into in the afternoon.
20. So focus tody will be on TCS, Oil & Gas Sector and Banks.