Pre Market Report, October 9, 2015 | Stocks and Commodities

October 9, 2015
Time: 8.10 am

Pre Market Report:

1. US markets closed higher after Fed minutes showed that Fed is not in hurry to hike rates.
2. So Asian markets are all trading in Green.
3. SGX Nifty is trading above 8220, after hitting a high of 8233.
4. First positive news, the Global cues are good.
5. Second positive news, though FIIs did not buy in the cash market, selling was very very low, below 100 crores.
6. There are some bad news also.
7. Bihar opinion polls show that BJP is not likely to form Govt. though BJP will be the single largest party.
8. That is a bad news for medium term trend of our market.
9. Yesterday profit booking dragged private sector banks ahead of IndusInd Bank results.
10. News of Reliance extracting gas from ONGC field dragged Reliance down.
11. Reliance, ITC, Infosys all three index heavyweights fell yesterday.
12. If Nifty future opens above 8220 and trades firmly above this level in the morning, then towards the end of the day there will be some profit booking that may drag the markets down.
13. So it will an interesting trade after 2 pm. Medium term investors will like to book some profits at higher levels after Bihar news.
14. Markets have gone up significantly in the last 6 or 7 trading sessions and there are lot of uncertainties next week in terms of corporate results and economic data, so in my opinion this is the right time for medium term investors to book some profits.
15. So, around 1 pm, after European cues are factored into our markets, I plan to square off Put options sold earlier and plan to sell 8500 and 8600 Call options.In case if there is 40 to 50 points down towards the end of the day, I plan to reverse those positions. In case expected fall does not come, then I plan to leave the positions as we will get some opportunity next week to exit with some profits in Call options. Put options, anyway I am just squaring up my positions with profit, it does not matter whether I get another chance to initiate the positions or not.
16. If there is huge gap up, Nifty future above 8220, one can consider squaring up Bank Nifty Put options sold earlier or buy Bank Nifty put options of strike 16500 or 17000, anyway Bank Nifty will show some volatility before 1.30 pm when IndudInd Bank is likely to declare the results, one will get some opportunity to book profits. This is a pure intraday play, so keep strict stop loss. 
17. Reliance, ONGC will be in focus due to gas rigging issue.
18. Auro Pharma will be in focus due to 300 million QIP issue.
19. Infosys will be in focus towards the end of the day as Infosys will declare results on Monday before markets open.
20. If Infosys rises to 1150, then Sell 1000 Put and 1300 Call. On Monday this strategy should give some profits.
21. Today Nifty is likely to trade between 8160 and 8240, there may be some sharp move, upside or downside, in the 2 hours of the trading session.