Pre Market Report, October 7, 2015 | Stocks and Commodities

October 7, 2015
Time: 8.20 am

Pre Market Report:

1. US markets closed mixed with Dow slightly up and Nasdaq and S&P 500 slightly down.
2. Crude prices are up as Russia is planning to negotiate with OPEC.
3. So most Asian markets are marginally positive.
4. First positive things for our market for today's trade.
5. One, FIIs were on the buy side for second day that too for a good sum.
6. Second, FIIs were bullish as per F&O data also.
7. Third, Global cues are positive.
8. Fourth, SGX Nifty is trading marginally positive.
9. Fifth, short covering may continue in Oil related stocks like ONGC, RIL, Cairn etc as these stocks are beaten heavily and now oil prices are going up.
10. But, there are some negatives also.
11. First, Nifty is trading closer to a big resistance zone of 8180-8220.
12. Second, DIIs were net sellers and usually DII sell corresponds to the medium term reversal.
13. Third, markets have been moving higher for the last 5 consecutive days, today may be the sixth day of positive open. So a short term correction is imminent, though some intraday day corrections have taken place.
14. Fourth, China markets will open tomorrow and it is likely to open in Red.
15. So there are many positive and negative triggers are there.
16. In my opinion, markets may open positive, oil related stocks will do well, banks may come under pressure, there will be some sharp selling towards the end of the day if markets move higher in the morning.
17. If markets are trading higher in the morning, it is better to cut long positions.
18. 18. One may consider selling 7700 put option and 8500 Call option as Nifty is likely to trade within the range of 7700 to 8500 for the next three weeks.
19. 7800 Put option and 8300 Call option have the highest open interests.
20. Nifty is likely to consolidate between 8000 and 8200 until the end of this week.
21. From next week, corporate results will dictate the trend.
22. Today, Nifty future is expected to trade between 8100 and 8220.
23. There is already some selling in Infosys ahead of its results on Monday.
24. One can consider selling Infosys 900 Put option and 1380 Call option when the inplied volatility moves up in this counter.
25. Infosys is not expected to move more than 100 rupees on either side on results day, implied volatility will go down on Monday after the results, so premiums will fall.