Pre Market Report, September 22, 2016 | Stocks and Commodities

September 22, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed more than 1% higher after Fed policy was in line with expectation.
2. SGX Nifty is trading around 8880, about 80 points higher.
3. This huge gap up will wipe out many short sellers.
4. Worst still, Put option buyers.
5. They will lose heavily as both Price and Volatility will go against them.
6. VIX is likely to crash by about 10%. This is my expectation.
7. Even the Call option premiums may not shoot up much except for first 10 minutes.
8. Say for example, yesterday around 3.29, I sold Bank Nifty 20400 Call option expiring today at Rs 8. Today, though Bank Nifty is likely to open gap up by more than 200 points, this Call option premium will come down.
9. Nifty future fell last Monday from 8900 level.
10. So the resistance will come around that level.
11. Yesterday we have under performed the world markets.
12. So we are likely to out perform the other markets today.
13. Nifty future may cross 9000 towards the end of expiry.
14. Until then Nifty will be highly volatile between 8700 and 9000.
15. Time for party day for bulls.
16. Due to huge gap up, short sellers will have no chance to come out with stop losses.
17. They will make huge losses today.
18. There may not be any stock specific movements.
19. All shares are expected to move slightly higher so the impact on Indices will be high.
20. Nifty future is expected to trade between 8820 and 8920.