Strong Expiry, January 25, 2017 | Stocks and Commodities

January 25, 2017
Time: 8.15 am

Pre Market Report:

1. US markets closed higher.
2. All Asian markets are higher.
3. SGX Nifty is trading about 30 points higher.
4. On Monday, Nifty future low was 8333.
5. Today, it is set to open around 8520, nearly 200 points higher in just two trading sessions.
6. Yesterday both FIIs and DIIs were net buyers in Cash market.
7. In F&O market, FIIs are not aggressive buyers.
8. Nifty is expected to expire around 8520.
9. This will be the highest point closing in this series.
10. Usually if January series is bullish, then bullishness will continue for the rest of the year.
11. By taking bullish view, I am planning to sell December 2017 expiry 9000 Put and Call.
12. That trade will be profitable if Nifty settles between 8000 and 10000 by the end of this year.
13. Maximum profit will be when Nifty expires around 9000 by the end of this year.
14. I will also be doing hedging trade along the way to maximise the profit.
15. This is a low risk - low reward strategy.
16. Though lower break even 8000 looks nearer, if you take into the Nifty future premium of, say, about 30 points, actual break even will be at 7700.
17. In my opinion, that is not going to be broken.
18. There may be some short covering in Axis Bank and ICICI Bank today.
19. Markets are likely to bevolatile.
20. Nifty future may take support at 8480 with resitance at 8560.