Pre Market Report, October 28, 2015 | Stocks and Commodities

October 28, 2015
Time: 8.30 am

Pre Market Report:

1. US markets closed marginally lower.
2. Brent crude is trading closer to its multi year low.
3. That is affecting most Asian markets.
4. Our markets fell for second day yesterday.
5. Lupin fell after the results as expected while Auro Pharma hit 52 week high.
6. Lupin and Auro Pharma will move in the opposite direction as Auro's gain in US is at the loss of Lupin in US for a particular medicine.
7. Nifty fell 27 points of which 22 points fall came from HDFC and Lupin.
8. There was a delivery selling of more than 500 crores in HDFC yesterday.
9. SGX Nifty is trading marginally lower at 8232.
10. If our markets close negative today, then it will three days of fall.
11. Usually this kind of fall will trigger a short covering rally in the last one hour of expiry.
12. It will be interesting to see how our markets move tomorrow afternoon.
13. We sold Call options of 8350 yesterday as Nifty is not expected to expire above 8350.
14. At the same time, we also sold 8100 Put options.
15. We also sold Bank Nifty 17000 Put and 18400 Call for a combined premium of more than Rs 10. This is the return for just two days and that is a decent return.
16. Today Nifty future is expected to trade between 8200 and 8300, the same range we mentioned yesterday.
17. There will be big moves if Nifty breaches this trading band.
18. But that may not happen today.