Pre Market Report, October 8, 2015 | Stocks and Commodities

October 8, 2015
Time: 8.10 am

Pre Market Report:

1. US markets closed higher though there was some selling in intraday.
2. Asian markets are trading mixed.
3. China markets opened firmly in Green after rise in commodity prices.
4. But Hong Kong is down.
5. SGX Nifty hit a high of 8252 yesterday night, but now trading flat at around 8200.
6. Our markets rose for 6 consecutive days, so it can not continue like this for many more days.
7. Yesterday top 5 Nifty 50 stocks are commodity related stocks.
8. Three out of bottom 5 stocks are from IT sector as rupee has appreciated.
9. Today since there are no triggers markets may consolidate with negative bias.
10. The next move, whether up or down, will be clear only next week after Infosys results.
11. Next week there are lot of triggers like corporate results from Infosys, TCS, HUL, and economic data like Inflation data, IIP data etc.
12. Bank Nifty will react to IndudInd Bank results tomorrow.
13. Sell IndudInd Bank 960 Put and Call option for a combined premium of about Rs 60. You will get a chance to exit after the results, when Implied Volatility goes down. In case if IndusInd Bank declares very good results, then go long in futures if the price crosses 1000 and sell one 1160 Call. In case if the results are bad, then go short below 920 and sell one 880 Put option. This is very complex strategy, you can do this only if you understand the risk, reward and margin requirements for additional positions, etc.
14. For low risk strategy, just sell 860 Put and 1040 Call for a combined premium of about Rs 11. IndusInd Bank is expected to trade between 860 and 1040 in this series.
15. For directional view, one can sell 8500 Call option if Nifty trades above 8200. Most technical analysts predict 8400 as very strong resistance as 200 DMA is around 8380.
16. For those who want to hedge, sell 7400 Put option as Nifty is not likely to go below 7500.
17. Nifty is expected to consolidate between 8140 and 8220 today.
18. Yesterday FIIs were on sell side and that may limit the upside today.
19. Yesterday Axis Bank was in bottom 5 and that is not good for Bank Nifty. In fact yesterday Bank Nifty closed slightly higher because of PSU Banks.
20. So expect a lackluster trade today.