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

March 17, 2017:
Time: 8.30 am

Pre Market Report:

1. US markets closed almost flat.
2. Asian markets are also mostly the same.
3. SGX Nifty is also trading flat with marginal gain.
4. Most of the events are over for this month.
5. Hence I expect markets to consolidate for some time.
6. We have 10 more trading sessions for this moth.
7. Nifty is likely to consolidate between 9000 and 9300 for the rest of the series.
8. Banking stocks have done well due to out performance of PSU Banks.
9. Markets are firmly in the hands of bulls and there may be some minor profit booking here and there.
10. There may not be any significant correction in the near future.
11. Highest open interest among Calls is at 9200.
12. So if markets move higher for one or the other reason, then these 9200 Call sellers will have to scamble to exit that may push the index to 9280 level.
13. That is the upper target for this series.
14. In case of any bad news, still Nifty will take very good support at 9000.
15. Yesterday I sold Nifty 9000 Put and 9400 Call.
16. Sun TV is gaining momentum as by election in Tamil Nadu gathers the momentum.
17. Yesterday Housing Finance companies did very well, Reliance Capital shot up nearly 10%.
18. Banks, Metals, Autos and Ambani group are all in bull grip.
19. We can expect some consolidation today, but there may be some sharp move towards the end of the session.
20. At the same time, I have observed many times in the past, when all events are over and when we expect markets to consolidate, there would be some sharp upmove.
21. So we have to be very careful about any such move. That is why I sold Nifty 9400 Call, though I am expecting 9300 as upper limit.
22. Today Nifty future may trade between 9150 and 9220.