Pre Market Report, March 29, 2017 | Stocks and Commodities

March 29, 2017
Time: 8.50 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are mostly higher.
3. SGX Nifty is up by about 25 points.
4. So what happened in the last few days was just a consolidation, not a correction.
5. Yesterday's FIIs buy figure was fantastic, over Rs 6000 crores.
6. DIIs also bought for over Rs 300 crores.
7. When both FIIs and DIIs are net buyers in Cash market, that too for such a significant amount, markets are not likely to fall.
8. Axis Bank helped Bank Nifty to recover most of the lost ground as there was a strong rumour that Kotak Bank and Axis Bank will be merged.
9. PSU Banks moved higher on further short covering.
10. Yesterday I sold Bank Nifty 20800 Put and 21600 Call as I am expecting Bank Nifty to expire between these two numbers.
11. As I have been Guessing, Nifty is also likely to settle between 9000 and 9200.
12. Now it looks like the expiry will be between 9180 and 9220.
13. FIIs hold huge short positions in stock futures, so stock specific short covering will be there.
14. Reliance is not likely to recover as subscription for Prime has been very low.
15. Even I have two Reliance JIO connection which I am not going to continue.
16. Though the net speed is very good, voice calls has lot of problems.
17. Moreover for another Rs 35 more, AirTel is offering almost similar scheme with very good voice quality.
18. So I sold Reliance 1260, 1280 and 1300 Calls yesteray morning itself.
19. Already those positions are sitting with good profit, even if there is any short covering, still Reliance may not move above 1280.
20. Today Nifty future is likely to trade between 9100 and 9180.