Pre Market Report, March 21, 2017 | Stocks and Commodities

March 21, 2017
Time: 8.25 am

Pre Market Report:

1. US markets closed mixed after a minor voltile session.
2. Asian markets are mostly higher.
3. SGX Nifty is trading around 9190, about 30 points higher than yesterday's close.
4. As I stated earlier, markets are likely to be consolidating between 9000 and 9300.
5. Nifty 9190 level where it is likely to open today, was same as last Friday morning level.
6. But option prices keep falling.
7. Even yesterday Nifty 9300 Call fell by Rs 6 and 9000 Put fell by Rs 2.
8. On Friday I sold Bank Nifty weekly option 21000 Put at Rs 60 and 21500 Call at Rs 30.
9. Yesterday I closed both with a net profit of about Rs 30. Bank Nifty 21000 Put closed at Rs 40 and 21500 Call closed at Rs 9.
10. I closed only for one client as I have huge amount of Put options for this client.
11. For this client, I have Bank Nifty Put options right from 21000 to all the way to 19000. I have call options also from 21500 to 22300.
12. For another client, I sold Bank Nifty 21000 Call and Put for a combined premium of Rs 750, the day before state election results, now the straddle is trading around Rs 400.
13. This gives more than 30% return in just few days.
14. Since markets are rangebound, both Put option and Call options are adding open interest.
15. Yesterday Nifty future traded within a very small range of 23 points. I have not seen such a narrow range in the last many years.
16. RSI has been hovering around 70 for the last two months.
17. If there is any negative trigger, then there may be some sharp downward move.
18. WHen there is a material change in the fundamental, like BJPs win in UP and other state elections, markets can continue to trade at over bought levels for a long time.
19. Today Nifty future may trade between 9140 and 9220.