Pre Market Report, March 28, 2017 | Stocks and Commodities

March 28, 2017
Time: 8.45 am

Pre Market Report:

1. US markets fell intially but recovered during the couse of the trading time.
2. Finally ended mixed with Nasdaq up and Dow and S&P 500 down slightly.
3. Asian markets are mostly higher but China is down.
4. So SGX Nifty is also moderately higher around 9100.
5. Three days into the expiry Nifty future is likely to open around 9100 which is the midpoint of expected expiry between 9000 and 9200.
6. Despite such a fall yesterday, Nifty 9000 Put saw increase in open interest instead of decrease.
7. There was no unwinding of Nifty 9000 Put despite Nifty went close to that level.
8. Hence that could be a strong support for Nifty for the next three days.
9. FIIs were net buyers in Cash market but continued to short heavily in F&O.
10. In the last 10 days alone, FIIs have shorted for more than Rs 7500 crores in stock futures.
11. A short covering rally in certain stocks is not ruled out.
12. But markets are likely to be highly volatile.
13. Yesterday, for example, Reliance Capital fell by Rs 25 and then shot up by the same amount.
14. Bank Nifty has out performed Nifty for the last two days.
15. So we need to see how Bank Nifty performs today.
16. Nifty future may trade between 9070 and 9140 today.
17. We can expect some consolidation between 9080 and 9120 and then breakout or breakdown may happen.
18. If breaks down, we can expect Nifty to expire between 8980 and 9020 and if the is breakout we can expect expiry between 9180 and 9220.
19. So, I am palnning to sell 8950 Put and 9250 Call depending upon market conditions.
20. We may little money but sure money.