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

October 16, 2015
Time: 8.25

Pre Market Report:

1. US markets closed firmly in Green.
2. There were some positive corporate rsults from big banks in US and also US is catching up with Aisa as Asian markets were firm in the last two days.
3. Asian markets are all in Green.
4. SGX Nifty is trading around 8220.
5. Yesterday markets traded as expected,
6. But I expected Tata Motors to fall due to JLR profit warning, but that was the best performing stock yesterday due to good sales figures from JLR.
7. Another reason for Tata Motors rise is short covering. Metals, Oil & Gas, Tata Motors, are all shorted heavily during the downturn.
8. It is not only Tata Motors, entire Auto pack rose. Maruti shot up by more than 3% after falling more than 10% in the last few days.
9. Markets traded in the expected range yesterday.
10. Today being Friday, last two hours trading pattern will be difficult to predict.
11. Nifty future is expected to trade between 8180 and 8250 until afternoon.
12. Then there may be some sharp up move or down move after 2 pm.
13. Traders will not like to carry positions through weekend as China will declare its GDP ahead of our markets open on Monday and there is a possibility of Gap Up or Gap Down on Monday.
14. Highest open interest among Puts is at 8000, so that will be a good support for the market.
15. Highest open interest among Calls is at 8200 followed by 8300.
16. Considering the fact that FIIs are heavily long in index futures and markets corrected this week, they should have sold 8200 Call option as Hedge for their futures position.
17. So if we take this into account, we can reasonably assume that the resistance will be at 8300.
18. As of now it looks Nifty will trade between 8000 and 8300. But most technical analysts predict that Nifty will reach 8350 - 8400 zone if 8250 is crossed.
19. Sometimes it is difficult to predict the range just by Open Interest as those things may change as the market moves.
20. If Nifty future crosses 8250, then 8300 Call will be shifted to 8400.
21. So the Nifty future may trade between 8000 and 8400. 
22. So another day of consolidation with positive bias can be expected. Markets may make a sharp move towards the end of the day. 
23. Today evening, Reliance will declare results.
24. Markets are not expecting any fire works in Reliance. The Implied Volatility is very low and the stock is also not making any move.

DISCLAIMER

The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Readers are advised to consult their Financial consultants before taking any position. The analysis is partially Technical and partially Fundamental. The views expressed are the Author's own views.