Pre Market Report, January 17, 2017 | Stocks and Commodities

January 17, 2017
Time: 8.20 am

Pre Market Report:

1. US markets were closed yesterday.
2. Asian markets are mixed.
3. SGX Nifty is trading almost flat.
4. But there are two good news.
5. One, corporate results have been good, yesterday LIC Housing came out with good results and the stock was up.
6. After the markets close, Reliance has come out with good results.
7. Second, there is some consensus in GST.
8. Earlier I said that I will not be surprised if Nifty crosses 8500 by the end of this expiry.
9. Now, just one short covering rally in IT stocks will sufficient to achieve this.
10. Let us see whether that happens or not.
11. Thursday and Friday trade will be very important as Axis Bank, Yes Bank and HDFC Bank are set to declare results.
12. FIIs have sold for Rs 347 crores in Cash market and DIIs have bought for Rs 203 crores.
13. FIIs are net sellers in both Index Futures and Stock Futures also.
14. But despite continuous selling by FIIs for the last two months, Nifty continues to move higher.
15. It seems that retail people have conviction in our markets.
16. Yesterday Bank Nifty has out performed Nifty.
17. SBI has seen good upmove with very good volume.
18. Nifty 8300 and 8400 added considerable amount of open interest.
19. It seems that now Nifty support level is moving higher.
20. Now Nifty 8300 is a very good support.
21. I will not surprised if there is a breakout today itself.
22. We can Buy March Nifty 8200 Put and Sell double the quantity of March Nifty 8000 Put and those who are ready to take higher risk can sell some more Puts at 7800, 7700, 7600 and 7500.
23. Despite the strong market, India VIX was up yesterday, a perfect time to sell options.
24. Another strategy: Buy 1 lot of February Bank Nifty 18500 and sell 2 lots each of February 18000 Put, 17500 Put and 17000 Put.
25. Both strategies, exit when the Delta neutral is achieved.
26. Today Nifty future is expected to trade between 8400 and 8480.