Pre Market Report, July 13, 2016 | Stocks and Commodities

July 13, 2016
Time: 8.40 am

Pre Market Report:

1. US markets once again closed at all time high.
2. So the sentiment is very bullish in Asia also.
3. SGX Nifty is trading marginally higher at 8540 after hitting a high of 8571 yesterday night.
4. Both FIIs and DIIs were on the buy side.
5. But the buying amount was not that impressive.
6. FIIs have bought for Rs 213 crores and DIIs have bought for Rs 119 crores in Cash market.
7. But the real action is in F&O, FIIs are heavily long in futures.
8. FIIs are net buyers for over Rs 2000 crores in F&O.
9. Yesterday ICICI alone contributed 40% for Nifty gain and 60% for Bank Nifty gain.
10. Axis Bank also shot up after lacklustre trade day before yesterday.
11. But IndusInd Bank is not moving higher after the results.
12. I expect the markets to consolidate for a day or two and the next move comes after key results from Infosys, TCS and Reliance.
13. Remember these three are the top 3 out of 4 index heavyweights and all three results will be out by the end of this week.
14. So the real action will begin only next week with key results and GST.
15. Any intraday fall of more than 50 points will be a buying opportunity now.
16. Since the markets have shot up in a very short time, profit booking is not ruled out.
17. So it is better to play with options.
18. Highest open interest among Puts is at 8400.
19. So that will be the base for this month.
20. This is the first time after a long time, highest open interest among Puts is positioned higher than last expiry's close.
21. Nifty is up by about 250 points in this series and we are still less than half the way and the real action is only in the last two weeks.
22. There are no stock specific action today, I expect the markets to consolidate between 8520 and 8580, a small range.
23. Among the Calls, 8600 now has the highest open interest but that may be due to hedging of long positions as FIIs have gone long hugely in Nifty future.
24. It will be good if markets consolidate for two to three days, so that next rally will be very good.
25. Even Nifty Dec 2016 Expiry 10000 Call is being traded actively.