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

December 9, 2016
Time: 8.35 am

Pre Market Report:

1. US markets closed higher once again.
2. ECB extended bond buying program though the quantum is reduced.
3. After the knee jerk reaction to Trump win, Emerging markets are stabilising.
4. Here in India, FIIs have turned net buyers in Cash market for third day after selling nearly Rs 24,000 crores in the last two months.
5. Yesterday FII buying was impressive at Rs 698 crores.
6. After a long time, bith FIIs and DIIs were net buyers in CAsh market yesterday.
7. That is the reason why there was not even a minor selling in yesterday's market.
8. As FIIs are turning buyers, FII counters like Maruti, Infosys, HDFC are likely to do very well.
9. Tamil Nadu political developements are helping Sun TV.
10. I am long in Sun TV at Rs 494 with two Call options sold, 500 Call at Rs 25 and 520 Call at Rs 12. In addition I have sold 5 lots of 600 Call option at Rs 4.
11. FIIs have turned net buyers, RSI is close to 60, Nifty is above 200 DMA, so both Technical and Fundamental factors are in favour of bulls.
12. But one more big event, the Fed meet is there next week.
13. So the volatility may continue for another one week. Then markets may stabilise.
14. I sold Put options in Nifty at strike 7800 and below.
15. I also sold Put options in Bank Nifty at strikes 17000 and below.
16. Today SGX Nifty hit 8300, if that happens in India, I plan to buy Nifty February expiry 8500 Call and sell 8600 Call and 8700 Call. My risk will stary only when Nifty moves above 8800.
17. In my view, first resistance is 8300, then 8500 and then 8700.
18. Nifty 8700 will the upside target at least until the end of January.
19. Budget will decide the market course in February.
20. On the downside, 7800 seems to be the support. That is why I am selling Put options below that level.
21. Nifty future may trade between 8220 and 8320.