Pre Market Report, August 26, 2016 | Stocks and Commodities

August 26, 2016
Time: 8.50 am

Pre Market Report:

1. US markets closed marginally lower.
2. Asian markets are mixed.
3. The above two statements were correct even in the last few days.
4. Yesterday, after 5 expiries, Nifty expired lower than previous expiry.
5. Also Nifty closed below 8600, lowest closing in August.
6. Whether the fall yesterday was just an expiry day jitter or jitter due to Janet Yellen's comment tonight or a trend reversal, we will know in the next few days.
7. In 2003, markets were up continuously for 5 to 6 months then for one month it was flat then it fell about 4% only to shoot up in the following months.
8. Why I am talking of 2003?
9. There are many similarities, which will take long time to explain.
10. In my personal view, we are in the beginning of a great bull market.
11. If that is not true, then, the worst case senario, our markets will not rise for 25 years, starting from 2008.
12. How the beginning of bull markets work?
13. Will go up for four to 5 months, then fall for one or two months again will go higher.
14. September will be a correction month if my guess is correct.
15. FCNR redemption will be a big challenge for India in September.
16. FII flow, crude oil prices, rupee movement, DII selling all will influence the markets.
17. I plan to sell Bank Nifty Call options of strie 20200 and above.
18. I also plan to sell Nifty 9000 Call options on every rise.
19. August series started with 8500 Put and 9000 Call having highest open interest among Puts and Calls respectively.
20. That range was respected in August.
21. September series also begin with the same set up.
22. Let us see whether that range is respected in this series.
23. Selling Put option is advisable only at strikes 8200 and below.
24. My expectation is that Nifty will trade between 8200 and 9000 with negative bias.
25. India VIX closed around 13 and this is time to book profit for option sellers.
26. Wait for India VIX to go above 15 to sell options.
27. Tata Motors will be in focus as it declares results today.
28. They tend to declare results close to 3.30 increasing volatility at the end of the session.
29. Nifty future should take support at 8580.
30. Resistance will be at 8720.