Pre Market Report, March 16, 2017 | Stocks and Commodities

March 16, 2017
Time: 8.30 am

Pre Market Report:

1. US markets closed higher after Fed announcement of 25 basis point hike in interest rates.
2. Since it was on the expected line, markets did not react negatively.
3. Moreover, US markets have been in sideways mode with negative bias for the last few days.
4. Asian markets are all higher.
5. SGX Nifty is trading about 80 points higher.
6. This is a huge gap up. Most traders were of the view that markets would fall after Fed event.
7. Even FIIs have shorted heavily in F&O market yesterday.
8. So we can expect a decent short covering rally going forward.
9. Earlier SGX Nifty used to trade until 11.30 pm Indian Time.
10. Now it seems that they have extended the time and now it is trading until 2.15 am Indian Time.
11. Yesterday IT stocks fell and that prevented markets moving higher.
12. It was a good consolidation day yesterday when Nifty traded within a small range of 25 points for most part of the day.
13. India VIX is likely to fall and hence the option premium.
14. For one high risk client, I have sold Bank Nifty Put option from 21000 to all the way upto 19000.
15. This client has made more than Rs 2.5 crore profit this year on a capital of less than Rs 1.5 crore.
16. Sun TV alone added more than Rs 15 Lakhs profit to this client.
17. I have made more than Rs 25 Lakhs in Sun TV alone and I stated in my Facebook, "Pessimists see problems in opportunity and optimists see opportunity in problems"
18. I have seen the opportunity in Sun TV while Tamil Nadu politics was in problem.
19. I am still holding long positions in Sun TV, long at rs 710 and sold 780 Call option.
20. Expexted profit is about Rs 2 Lakhs to each client. I have also sold Put options of 660, 680 and 700.
21. Nifty future is on a solid footing, we can expect Nifty future to consolidate between 9100 and 9300 until the end of this month.
22. Today Nifty future will face resistance at 9220.