October 14, 2015
Time: 8.15 am
Pre Market Report:
Time: 8.15 am
Pre Market Report:
- US markets closed lower after a volatile trade.
- US markets closed lower after 7 consecutive days of positive close.
- So Asian markets are trading lower for second day.
- SGX Nifty is marginally lower.
- Yesterday's fall was bought in in the last half an hour.
- Today we have to see whether 8100 holds or breaks down.
- If Nifty future breaks 8100, then chance of testing 8000 on the down side is very high.
- I predicted a range of 7500 to 8300 in the beginning of this month and that seems to be holding as of now.
- Since there are only 10 more trading sessions and we are not sure whether this minor fall is the point of brek down or part of consolidation, it is better to play with Options.
- Depending on your risk taking capacity, you may sell 8300 Call or 8400 Call. Then wait, if markets fall below 8000, then sell 7700 or 7600 Put, if markets do not fall below 8000, just leave it.
- If you sell 8400 Call then there is nothing to worry. If you sell 8300 Call, then, you need to close this position and move to 8400 Call option when Nifty future crosses 8250.
- You may consider selling 8350 Call option also.
- So far earnings have been neutral to the market movement, there were no positive or negative surprises.
- There are no major results except HUL and Reliance in the next few days.
- So along with India VIX, option premiums are likely to drift lower slowly.
- Bank Nifty has just moved 300 points in the last one and half month.
- PSU Banks are still very weak.
- Yesterday I created positions in TCS 2350 Put option and 2800 Call option for a combined premium of Rs 18. I partially exited as I made good profits by yesterday afternoon and carry some positions. I am likely to make at least Rs 8 per share as profit.
- FIIs were once again on the buy side yesterday.
- So I expect some consolidation rather than the break down in Nifty.
- I expect Nifty future to trade between 8080 and 8180.
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