Pre Market Report, January 31, 2017 | Stocks and Commodities

January 31, 2017
Time: 8.35 am

Pre Market Report:

1. US markets closed lower after Trump's announcements.
2. Asian markets are weak.
3. But SGX Nifty is lower marginally about 25 to 30 points.
4. For today and tomorrow, we may not follow global cues.
5. Budget and some corporate results will dominate the markets.
6. Today ICICI Bank results will be in focus.
7. It has about 5% weightage in Nifty and about 20% weightage in Bank Nifty.
8. Axis Bank has disappointed the markets, we need to see what ICICI Bank does.
9. Another problem is that ICICI Bank may declare the results after the market hours, so gap up or gap down tomorrow morning is a problem for traders.
10. In addition Bajaj Auto, ONGC results will influence respective sectors, i.e. Auto and Energy sectors.
11. Bank of Japan policy has become a non event as it has maintained the status quo.
12. Both FIIs and DIIs are net buyers in Cash market is another positive news.
13. Even IT sector took support at the lower levels yesterday.
14. Telecom was the star sector with Idea shooting up more than 25%.
15. I bought Idea futures at Rs 97.50 and sold 100 Call at Rs 6 and 107.50 Call at Rs 4.
16. So I am protected upto Rs 87.50 on the downside.
17. If Idea expires between Rs 100 and Rs 107.50, I will get maximum profit of Rs Rs87,500. My profitablity will move down if Idea moves higher than Rs 107.50 and my breakeven will be at Rs 116.
18. I will be adjusting the positions along the way to maximise the profit or to minimse the loss.
19. This is small speculative position I have taken, otherwise I am not interested taking positions ahead of Budget.
20. All my other positions are hedged with some buy options.
21. Nifty future may trade between 8600 and 8700. Better be away from the markets, any position created, try to close by the end of the day or tomorrow before 11 am.