Pre Market Report, August 9, 2016 | Stocks and Commodities

August 9, 2016
Time: 8 am

Pre Market Report:

1. US markets closed marginally lower.
2. It was just consolidation after a good positive closing the day before.
3. Asian markets are mostly higher.
4. SGX Nifty is also higher by about 10 to 15 points.
5. Yesterday FIIs have bought for Rs 1156 crores in Cash market.
6. That too on a day when Nifty was trading at 52 week high.
7. That shows the bullishness of FIIs in our market.
8. However DIIs have sold for Rs 876 crores.
9. Retail people are getting out of stock market after seeing 1900 point rally in Nifty in just less than 5 months.
10. FIIs have shorted in stock futures in F&O.
11. Today all eyes will be on RBI policy.
12. Markets may trade range bound with volatility until 11 am.
13. After that markets will move in a direction depending on the RBI policy.
14. Volatility Index is likely to fall after the policy.
15. Option premiums may also go down.
16. Yesterday I sold Bank Nifty 18000 Put option and 20000 Call option for a combined premium of Rs 72.
17. I will be making some profits when India VIX falls and Bank Nifty should not move violently.
18. Adani Port will declare results today.
19. NBFC stocks are in focus as Manappuran Finance is coming out with results today.
20. Expect a volatile trading day, particularly in Banking stocks due to RBI policy.
21. Bank Nifty is likely to fall if there is no rate cut.
22. Bank Nifty moved from 18000 to 19000, then fell two times and took support both times around 18500 and recovered.
23. So in case if 18500 is broken I will exit my long positions.
24. In case of rate cut, Bank Nifty can easily test 19500, may not be today, in the next few days.
25. As a high risk trade I have sold both 19000 Call and Put for a combined premium of Rs 600 few days before.
26. I will make profit if Bank Nifty trades between 18400 and 19600.
27. Nifty future is likely to trade between 8680 and 8820, a wide range due to RBI policy.