Pre Market Report, January 20, 2017 | Stocks and Commodities

January 20, 2017
Time: 8.25 am

Pre Market Report:

1. US markets closed lower. Today Trump becomes the President of US.
2. Asian markets are mixed.
3. China GDP came better than expected. That is a good news.
4. Usually when the going is good, China becomes the party spoiler.
5. That may not happen now.
6. Coming back to our markets, Nifty has been in consolidation mode for the past one week.
7. Nifty has been trading between 8380 and 8460 for the last 5 days.
8. I expect the range to be broken today afternoon.
9. FIIs have turned net sellers once again.
10. But they are net buyers in F&O.
11. DIIs however continue to support the markets.
12. First time in the last two weeks, Bank Nifty closed in Red.
13. Today Axis Bank will react to its bad set of numbers.
14. Sensing the exhaustion in Bank Nifty, I sold Bank Nifty 19500, 19600, 19700 and 19800 Call options yesterday.
15. Nifty 8400 Put added about 7 lakh shares in open interest.
16. Nifty 8500 Call shed open interest about 1.2 lakhs and 8600 Call added open interest of about 4.2 Lakhs.
17. This shows that people are confident of higher market levels.
18. Expected Nifty range has shifted from 8300-8500 to 8400-8600.
19. After a long time, Infosys has taken support at 950 and moved higher by Rs 10.
20. Reliance has also fallen considerably in the last two days factoring in the results.
21. So key index heaveyweights are at the support zone.
22. Yesterday first time in the last four days, severe selling did not come when Nifty future crossed 8450.
23. Now SGX Nifty is trading lower by 15 points.
24. Markets are likely to trade sideways and make a sharp move towards the end of the day.
25. That sharp move may be on the upside.
26. There are no key corporate results today.
27. Traders can sell Nifty 8300 Put and 8600 Call as Nifty is expected to expire between these two numbers.
28. Today Nifty future is expected to trade between 8380 and 8480.

Note: Workshop date and Venue will be informed later.