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

February 20, 2017
Time: 8.25

Pre Market Report:

1. US markets closed at another record high after trading lower for most part of the day on Friday.
2. Asian markets are mixed but recovered from morning lows.
3. SGX though started lower, now trading in Green at around 8330.
4. Friday's trade was an unsual day of trade for us as Bank Nifty hit all time high but only for few seconds.
5. Though Bank Nifty crossed all time high, Bank Nifty future was trading almost 400 points discount to Bank Nifty at that point of time.
6. All commotion came because of HDFC Bank which came out of FII ban.
7. But within hours it has come under FII ban again and then HDFC Bank corrected significantly.
8. So Bank Nifty closed almost 500 points lower from the intraday peak by the end of the day.
9. Today we need to see how HDFC bank trades which will decide the Bank Nifty's direction.
10. Pharma sector recovered in Friday's trade.
11. Markets are likely to be volatile due to expiry related issues for the next few days.
12. For 12th trading session Nifty has been trading between 8700 and 8850, the only exception is Friday morning trade when Nifty traded higher than 8850 for some time due to HDFC Bank.
13. The market set up looks like the same may continue for few more days with high volatility.
14. So if Nifty moves towards 8850, then we may sell Call options and if Nifty moves towards then we may sell Put options.
15. Most of the corporate results are out, Ambuja cement will declare results today.
16. On Friday FIIs were net buyers in Cash market for more than Rs 8000 crores, that is a fantastic figure.
17. However DIIs decided to book the profit in HDFC Bank by selling in huge quantities.
18. DIIs have sold for more than 5000 crores.
19. FIIs have shorted for more than 5000 crores in F&O.
20. So the net buy figure was not that impressive.
21. Both Nifty and Bank Nifty futures lost the entire premium and trading almost same as corresponding underlying.
22. Open interests suggest the range of 8700 to 9000 for this expiry.
23. Today Nifty future may trade between 8780 and 8880.