Pre Market Report, February 23, 2016 | Stocks and Commodities

February 23, 2016
Time: 8.15 am

Pre Market Report:

1. US markets closed firmly in Green.
2. But Asian markets are not doing that well.
3. SGX Nifty was trading above 7260 yesterday night but today's was exactly same as Nifty future's high here yesterday.
4. Now SGX Nifty is trading almost flat around 7240.
5. Our markets have been under performing and will adjust to international markets only after budget.
6. Since our markets were up for fourth day yesterday, there seems to be some tiredness by bulls, even breakouts are not sustaining despite breaking out many times.
7. BHP billiton has declared 5 billion loss and that is affecting sentiment in Asia to some extent and Dow futures turned negative.
8. Just 100 points away from yesterday's close, Nifty 7150 Put and 7350 Call are available for a combined premium of Rs 20.
9. Those who believe there will be some sharp move of more than 120 points on either side may buy these options.
10. There were a number of times markets have made big moves towards the end of the series.
11. But option sellers feel that Nifty will expire between 7160 and 7340 and that is why 7200 Put and 7300 Call are adding so much in open interest at a combined premium of Rs 40.
12. Auro Pharma, Tata Motors DVR, Bharti Infra will be in focus as they are included in Nifty.
13. Vedanta, Cairn and PNB may come under pressure as Index funds will exit these counters.
14. Markets are starting silently and that is dangerous, a sharp move may happen any time.
15. I am a seller of Nifty 7150 Put and 7350 Call as I am expecting Nifty to expire between 7150 and 7350.
16. If my prediction go wrong, I will manage by delta hedging.