Pre Market Report, November 2, 2016 | Stocks and Commodities

November 2, 2016
Time: 9 am

Pre Market Report:

1. US markets fell drastically after a news report suggested that Trump is leading Hillary by 1% point.
2. US markets closed at 5 month low.
3. Markets all over the world are not prepared for this kind of news.
4. Asian marketa are all down significantly.
5. SGX Nifty is down by about 85 points which is a huge gap down.
6. But after such a big gap down, after initial panic, markets may stabilise.
7. First, FIIs have slowed down their selling in Cash market despite markets were in good condition yesterday morning.
8. FIIs have bought more stock futures than what they sold in Index futures.
9. Since the beginning of this series, India VIX keep moving higher and it is likely to move higher today also.
10. US Fed meeting today and important Jobs data Friday, US election on next Tuesday all will keep the markets jittery until next Wednesday.
11. Last Thursday, I created some positions, markets are flat since then, still I am going into losses everyday, just because of VIX increase.
12. Nifty has been very volatile in the range 8500 - 8700.
13. That may continue for next few days.
14. Last time, on 27th October, Nifty took support at 8550.
15. We need to see whether Nifty takes support there today or not.
16. If 8550 is broken, then next support is at 8500. On October 17, Nifty low was 8506.
17. There are no important corporate results this week.
18. So be ready for volatile markets for the next few days.
19. Premiums have shot up due to increase in VIX and hence there is no point in buying options.
20. I have sold December Expiry 8000, 7900, 7800 Put options in Nifty and sold December Expiry 9000, 9100, 9200 Call options.
21. Keeping wide range as markets may move violently.
22. Today Nifty future may trade between 8540 and 8620.