Pre Market Report, July 21, 2016 | Stocks and Commodities

July 21, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed at another record high.
2. Dow has been making record high for ninth trading session in a row.
3. The rally is supported by good corporate earnings, so there is no need to worry about the bubble being built.
4. Asian markets are mostly trading higher.
5. SGX Nifty is trading flat with negative bias.
6. Yesterday FIIs have slowed down their Cash market buying.
7. At the same time DIIs also slowed down their selling.
8. As per NSE data, FIIs have sold heavily in F&O.
9. But I doubt the NSE data, there must be some error, FII data in F&O says that FIIs have bought stock options for Rs 3956 crores and also sold for exactly same amount.
10. This is next to impossible, first the volume in stock options has never been so much in the history of our stock market, second, buying and selling are exactly equal for such a big figure is amazing.
11. But SGX Nifty is confused due to this FII data.
12. There was an addition of open interest of more than 8 lakh shares in 8500 Put option.
13. It seems that the base is moving from 8400 to 8500.
14. There is some unwinding in 8600 Call and addition of open interest in 8700 Call.
15. So the range 8400 - 8600 seems to be shifting to 8500 - 8700.
16. Yesterday morning only I mentioned that Pharma stocks look bullish.
17. Yesterday most pharma stocks have shot up.
18. ITC, HDFC Bank, Kotak Bank, Ashok Leyland will declare results and that will decide the trend today.
19. L&T Infotech is listing today at a wrong time, the sentiment is very bad in IT pack.
20. Infosys may come under pressure due to top level resignation.
21. L&T may be subdued due to L&T Infotech lacklustre debut. 
22. Nifty future should take support at 8520.
23. Resistance will be at 8620.
24. If 8620 is taken then the next resistance will be at 8680.
25. I will be looking to sell 8500 Put once 8620 is crossed.
26. Until yesterday I was selling 8400 and below Put options.
27. Bank Nifty will see more action today due to corporate results.
28. Bank Nifty spot is finding resistance at 19000.
29. August expiry Bank Nifty 20000 Call is trading at Rs 120.
30. That is the kind of bullishness in Bank Nifty.
31. Now it seems that GST bill will be tabled only in August.
32. So August will have GST and RBI policy as key events.