Pre Market Report, February 22, 2016 | Stocks and Commodities

February 22, 2016
Time: 8.30 am

Pre Market Report:

1. Though US markets closed mixed on Friday, all Asian markets are up.
2. China has injected US$25 billion liquidity on Friday and replaced Stock Market Regulator.
3. So China markets are reacting positively for these two news.
4. But SGX Nifty is not reacting much.
5. After hitting a high of 7237, it s trading at 7205, almost flat.
6. People expect markets to trade sideways with positive bias.
7. That is why Nifty 7200 Put has added 9 lakh shares in the open interest on Friday.
8. Nifty 7350 Call has added highest open interest among Calls.
9. Last week I siad, I will not be surprised if Nifty expires in the rnage 7280-7320 leve.
10. Many people are positioning for that kind of expiry. Even 7300 Put has added 2.5 lakh shares in the open interest on Friday.
11. Addition of open interest, that too very close to expiry, at ITM option is unusual.
12. Many people think Nifty will break out ultimately as it has tried to break 7220 level many times.
13. Similarly ITM option in Bank Nifty 14400 Put option also added 64000 shares in the open interest.
14. So if everything goes as expected, Nifty will breakout and will test 7280 at least.
15. On the downside, Nifty is likely to find big support at 7150.
16. So the range for next four days may be 7150-7320.