Pre Market Report, October 20, 2015 | Stocks and Commodities

October 20, 2015
Time: 7.30 am

Pre Market Report:

1. US markets closed marginally higher afetr a choppy session.
2. Asian markets are mixed.
3. Commodities are under pressure due to slowing China economy.
4. As expected markets consolidated in yesterday's trade.
5. Reliance also rose more than 5% as expected.
6. Nifty rose by about 37 points and still 8300 Call option did not go up.
7. This shows that markets will consolidate for another day or two.
8. Both (out of money) Put and Call options fell.
9. Action was shifted to Reliance, Infosys and some Pharma stocks from Banks.
10. So Bank Nifty future fell more than 100 points.
11. Yesterday FIIs have bought heavily in cash market which indicates that after a day or two consolidation, markets may move higher.
12. Highest open interest among Puts is at 8000 and highest open interest among Calls is at 8300.
13. This shows that 8380 will be a stiff resistance sine the combined premiums of 8000 Put and 8300 Call is around Rs 80.
14. SGX Nifty is trading marginally higher at 8278.
15. Today Nifty future is expected to trade between 8220 and 8320, the same expected range yesterday.
16. But positive bias may continue if there are no negative news.
17. Today Nifty may cross 8284, the Jan. 1 close. 

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.