Pre Market Report, February 17, 2017 | Stocks and Commodities

February 17, 2017
Time: 8.40 am

Pre Market Report:

1. US markets ended almost flat.
2. Asian markets are also mostly flat.
3. But SGX Nifty is trading about 40 points higher.
4. Day before yesterday markets showed some weakness.
5. But FIIs and DIIs were net buyers in Cash market.
6. That is why yesterday there was some improvement in the sentiment.
7. Newsflow like SBI Assciat banks merger, TCS share buyback helped the sentiment to turn around.
8. Yesterday also both FIIs and DIIs were net buyers in Cash market.
9. DIIs buy figure was more than 800 crores and that is surprising.
10. FIIs were net buyers in all 4 segments of F&O, Stock Futures, Index Futures, Stock options and Index options.
11. Once again we will be in consolidation mode today between 8700 and 8850.
12. So the momentum will gain only when this range is broken.
13. If there is a breakout then we can expect Nifty to expire netween 8920 and 9000.
14. Now the most beaten down sectors like IT and Pharma are catching up.
15. Bank Nifty may lead the rally.
16. Bank Nifty will have resistance at 20,500, once that is crossed, we can expect Bank Nifty to rally towards 21000, all time high figure.
17. When the markets were weak, I sold March Nifty 8500, 8400, 8300, 8200, 8100 and 8000 Put and if Nifty crosses 8900, then I plan to sell March Nifty 9100, 9200, 9300, 9400, 9500 Calls.
18. March series is a 5 week series with major event risk, state election results, so it is better to stay with Nifty and Bank Nifty.
19. However some small speculative positions will be good, one such counter is Sun TV, due to TN political situation.
20. Likely to make more than Rs 20 lakhs profit in Sun TV this month if things go well for the next few days.
21. Nifty future may trade between 8780 and 8850.