Pre Market Report, November 6, 2015 | Stocks and Commodities

November 6, 2015
Time: 8 am

Pre Market Report:

1. US markets closed marginally lower after opening higher is the morning.
2. Asian markets are mixed.
3. Countries like Japan, China, Hong Kong are ignoring US cues and move higher due to their local cues.
4. India is ignoring US cues and continue to fall everyday. 
5. Now Bihar exit poll results has become a non event.
6. Markets will focus on corporate results as today is the day when most of the results will be out.
7. Bank Nifty will be in focus as SBI, PNB and BOB will declare results.
8. More than their results, NPAs will be watched carefully.
9. Tata Steel and Cipla may react negatively due to thier results.
10. Auto sector will be in focus as Tata Motors, M&M, Bosch and Eicher declare the results.
11. SGS Nifty is trading around 7990.
12. India VIX is likely to come down towards the end of the day and further down on Monday.
13. Going by option prices, Nifty range for this series seems to be 7800 - 8300.
14. Today Nifty may take support at 7940 and the resistance will be at 8040.
15. Within this range markets are expected to be highly volatile.
16. If the markets are highly volatile, then it is good as the markets will show high volatility either at the upper end or at the lower end of the trading range.
17. Huge FII selling of about 1000 crore is Cash and 4000 crore in F&O will cap the upside.
18. At the same time, since markets are significantly lower and trading below 8000, DIIs will be aggressively and that may cap the downside also.
19. Auro Pharma will be in focus ahead of its results, I went long in Auro Pharma at 820 and sold 820 Call at Rs 32 and sold a 900 Call at Rs 7. So if Auro settles between 820 and 900 by the end of this month, my profit will be Rs 39 per share which is about Rs 28000 per lot. Let us see how this performs.