Pre Market Report, February 14, 2017 | Stocks and Commodities

February 14, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed at another record high.
2. But Asian markets are mixed.
3. Our markets have been under performing the Asian peers.
4. For the last 8 trading sessions, Nifty future has been trading between 8700 and 8850.
5. But there was huge volatility within this range.
6. Markets can not keep consolidating like this for many more days.
7. There will be breakout or breakdown very soon.
8. Probability of breakout is higher than the breakdown as we are close to the upper end of the trading range.
9. Sasikala's supreme court verdict will be out, which is a make or break verdict for Tamil Nadu politics.
10. So SUN TV will be in focus after 10.30 am, the scheduled time of the verdict.
11. Yesterday though global cues were very good, some poor corporate results dragged the markets down and the sentiment was punctured.
12. Bank of Baroda fell more than 10% affecting PSU Bank index and Bank Nifty.
13. But private sector banks were very firm, Yes Bank hit all time high.
14. Markets will breakout if Nifty future crosses 8850 and Bank Nifty crosses 20500.
15. In that case, we can expect the expiry around 9000.
16. FIIs were net buyers in Cash market as well as F&O.
17. SGX Nifty is trading around 8840 about 25 points higher.
18. That is a good sign as Asian markets are mixed with negative bias.
19. As I have been mentioning, Nifty is likely to trade between 8500 and 9000.
20. I sold 8500 Put in large quantities and waiting for breakout and want to see the strength of the breakout.
21. If the breakout is strong, Nifty crosses 8900, then I may sell 9050 call or 9100 call.
22. If the breakout is not strong, if Nifty struggles around 8880, then I may sell 9000 Call.
23. If there is no breakout and I will just leave the positions to capture the time value.
24. I will close the positions if Nifty breaks below 8700.
25. I hope that does not happen, even if that happens I will closing the positions with some profit.
26. Today Nifty future is expected to trade between 8780 and 8880.