Calm Before Storm, January 30, 2017 | Stocks and Commodities

January 30, 2017
Time: 8.30 am

Pre Market Report:

1. US markets are struggling at higher levels.
2. Trump order against some muslim countries haviing some effect in Asian markets and US futures.
3. Many Asian markets are closed due to Chinese New Year.
4. European and US futures are down marginally.
5. SGX Nifty is trading about 50 points lower.
6. This is a significant gap down considering the bullishness of the last few days.
7. Markets will throw out the weaker bulls before resuming the uptrend.
8. On Saturday L&T results show that the economic recovery is still not happening.
9. Capital goods will recover first when economy recovers.
10. Ahead of make or break budget, people are keeping the positions light.
11. Open interests among Call and Put options are very low.
12. One good thing is that despite such a big move of about 800 points in Nifty, DIIs are still buying in huge quantities.
13. Usually DIIs book profit at higher levels.
14. But they keep buying, that shows that we are not at higher levels, at least in their opinion.
15. If DIIs continue to buy like this, if budget is not a party spoiler, then there will be more upside.
16. Markets will also be focussing on Japan's central bank policy and a lot of manufacturing and services PMI data, auto sales data, US employement data, etc.
17. We are entering an exciting week of trade.
18. Trade only in options, do not touch futures.
19. Stocks are likely to swing widely.
20. Have considerable hedging positions.
21. That is the way to handle this market.
22. Buying of Bank Nifty 21000 Call and selling of double the quantity of 21100 Call will give you 4% return, assuming that you are paying only Span margin.
23. That is a fantastic deal, I am planning to create if it is available at Friday's price.
24. Nifty future may trade between 8600 and 8700.