Pre Market Report, January 19, 2017 | Stocks and Commodities

January 19, 2017
Time: 8.35 am

Pre Market Report:

1. US markets ended mixed with Dow down and Nasdaq and S&P 500 up.
2. Asian markets are also mixed.
3. In fact, this month most markets are not going anywhere, just sideways move.
4. But our markets moved significantly higher due to our under performance in November and December.
5. That trend may continue as we are expecting a good budget followed by RBI policy in the next few weeks.
6. Yesterday FIIs have bought for a second time in a row.
7. DIIs were also net buyers.
8. After a long time both FIIs and DIIs have become net buyers in Cash market.
9. However FIIs have booked profit in F&O.
10. Today it is going to be all about Axis Bank, Yes Bank, Federal Bank results.
11. Today once again Bank Nifty will be in focus.
12. Bank Nifty weekly expiry will add to the volatility today.
13. Yesterday though Nifty was not doing well, Bank Nifty was trading firmly.
14. Yesterday Infosys, Reliance, ITC, all key index heavy weights were down, yet markets did not fall as Bank Nifty compensated.
15. Both Axis Bank and Yes Bank are up significantly before the results, if the results are not good these stocks may fall considerably and that may bring down the Bank Nifty.
16. So another day of volatile trade is expected.
17. After today, there will be only four trading sessions for this expiry and hence option prices may collapse at the end of the day.
18. I have sold Bank Nifty 18200 and 18000 Put options and 19700 and 19800 Call options.
19. There was a significant reduction in open interest in Nifty 8300 and 8200 Put options and significant increase in Nifty 8500 Call option.
20. SGX Nifty is trading marginally lower at 8425.
21. Nifty future is expected to trade between 8380 and 8480.