Pre Market Report, March 22, 2017 | Stocks and Commodities

March 22, 2017
Time: 8.40 am

Pre Market Report:

1. US markets closed significantly lower.
2. Though reasons are given, main reason is the profit booking.
3. US markets run up significantly in the last few months.
4. Asian markets are mostly lower.
5. SGX Nifty is trading about 75 points lower.
6. FIIs have shorted heavily in F&O.
7. But FIIs are net buyers in Cash market.
8. Markets are likely to consolidate between 9000 and 9300 until the end of this expiry.
9. There is nothing to worry as long as Nifty future trades above 9020.
10. I am planning to sell 9250 Call option if there is any slight uptick in Nifty intraday.
11. Bank Nifty is looking weak, but HDFC Bank saved the Bank Nifty from collapsing.
12. So we need to watch the price movement of HDFC Bank, if that starts moving down, Bank NIfty may correct significantly.
13. I was slightly bullish just before state election results due to positive exit poll results, so I sold Bank Nifty 21000 Call and Put at a cobined premium of Rs 750.
14. That is doing very well now as Bank Nifty hovers around 9000.
15. Since Bank Nifty uderperformed yesterday, I closed most of the Put positions in Bank Nifty.
16. Today markets may be down, India VIX may be up, premiums may shoot up.
17. Perfect time to sell options but not in March series, but in April series.
18. We do not have to worry much about Global cues as we have under performed the world markets for many months due to Demonetisation.
19. Steel prices may go up and hence it is better not to short metal stocks.
20. Pharma stocks are correcting, DrReddy and Divis hit 52 week lows.
21. Yes Bank will be in focus as it is coming out with 1 billion QIP.
22. If Nifty future holds 9070, then it good for today.
23. Nifty future may trade between 9050 and 9140 today.