Pre Market Report, March 23, 2017 | Stocks and Commodities

March 23, 2017
Time: 8.25 am

Pre Market Report:

1. US markets stabilised after a significant fall the day before.
2. Our markets may also do the same.
3. I expected Nifty future to take support at 9070 but in the last hour it fell further.
4. I got scared as I am having lot of Nifty 9000 Put.
5. I closed all those Puts and shifted to 8950.
6. Yesterday at opening I sold 9250 Call at Rs 10.50 which is likely to be safe.
7. With yesterday's correction, RSI has come down to about 60 in Nifty and 55 in Bank Nifty.
8. The big question is, what next?
9. Is it going to be a big correction? Or markets will resume the uptrend after few days of consolidation?
10. I expect markets to consolidate between 9000 and 9200 until expiry.
11. There will be prolonged correction if Nifty breaks 9000 and the rally will resume if Nifty crosses 9200.
12. FIIs have shorted in Stock Futures for Rs 5500 crores in the last three days.
13. Any short covering will lead to a sharp recovery.
14. PSU Banks did very badly yesterday. PNB fell more than 6% in the last few days.
15. Sun TV will be in focus as "Two Leaf" symbol was blocked by election commission and AIADMK name should not be used by both factions now.
16. This will brighten the prospects of DMK in the byelection.
17. Reliance has corrected from 1330 to 1250, Yes bank corrected from 1550 to 1470, Maruti corrected from 6200 to 5980 and many other quality stocks corrected a decent amount.
18. This may attract fresh buyers, if fresh buying comes then only short covering will set in and markets will move higher.
19. I am planning to close the positions today or tomorrow and plan to move the positions to April or May series.
20. Right now, my thinking is that I buy 9000 Put and then sell Puts from 8900 to 8200 and then buy 9200 Call and sell Calls from 9300 to 9800.
21. This is a low risk strategy to capture the time value.
22. Will sell more Puts if Nifty crosses 9200 and sell more Calls if Nifty breaks 9000.
23. Shankara Building products IPO is "avoid" whenever the sentiment is good, many low quality issues will come and it is not a good idea to apply all IPOs.
24. Now the markets has come down from 'over bought' levels, it will be interesting to see how markets move from here.
25. As long as Nifty future is trading above 9020, we can expect markets to bounce back next week.
26. Today Nifty future may trade between 9050 and 9120.