Pre Market Report, January 18, 2016 | Stocks and Commodities

January 18, 2016
Time: 8.45 am

Pre Market Report:

1. US markets closed lower.
2. Asian markets are mixed.
3. SInce there was huge rally in December, most world markets are moving sideways.
4. But India under performed the world markets due to Demonetisation.
5. Now India is out performing the other markets in January.
6. Yesterday evening, the CBDT circular putting the indirect tax on FIIs and FPIs in abeyence is a good news.
7. Yesterday Reliance fell despite good results.
8. Despite market leadres like Reliance and Infosys falling, markets did not fall, markets are just consolidating.
9. So far corporate results have been good.
10. Since Bank Nifty has shot up more than 1500 points from the recent low, any disappointment in Banking results will bring down the Bank Nifty.
11. Tomorrow Axis Bank and Yes Bank will declare results.
12. Today no key corporate results.
13. So today also markets may choose to consolidate.
14. One big relief is that after selling for so many days continuously, FIIs have turned net buyers in Cash market.
15. In fact FIIS were net sellers everyday since December 19.
16. So our markets may consolidate with positive bias.
17. DIIs have booked some profit, probabily they want to keep some cash to support the CPSE ETF issue, in case if it fails.
18. Nifty has shot up 500 points from the recent low despite FIIs keep selling everyday.
19. If corporate results are good and Budget is good, then Nifty will move evn higher.
20. I already bought March 8000 Put and sold 7800 Put, now I am planning to Buy 8200 Put and sell 8000 Put double the quantity.
21. My breakeven will be at 7800, I will be making decent profit if Nifty moves higher.
22. Nifty may trade between 8380 and 8480.