Pre Market Report, March 3, 2017 | Stocks and Commodities

March 3, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed lower yesterday night.
2. Asian markets are mostly lower.
3. SGX Nifty is trading about 30 points lower.
4. Few days before, I said, markets are likely to consolidate, any break out or break down will happen only after state election results.
5. But for no reason, markets went up on March 1.
6. How much markets went up on March 1, yesterday it came down equally.
7. Effectively Nifty future closed at the same level as 28th February.
8. In February, Nifty was trading between 8700 and 8850 for more than 2 weeks and then broke out.
9. After that Nifty has been trading between 8850 and 9000.
10. Since 8850 was the break out level, that should act as a strong support.
11. This range may go on at least for another 4 days, until exit poll results are out.
12. Yesterday's fall is just a normal profit booking.
13. I do not think this is a trend reversal, like last time, trend reversed and Nifty went below 8000.
14. FII and DII buy/sell figures also indicate the same, this is not a trend reversal, just a normal profit booking.
15. So I am maintaining all my long positions, but plans to hedge on the lower side.
16. I have Nifty long positions in huge quantities, my average price is around 8200, now I bought 8700 Put and sold double the quantity of 8500 Put.
17. The reason, the panic will set in only if Nifty breaks 8700.
18. IMD has forecasted normal monsoon this year also and that is a positive news.
19. Satta bazar is betting that BJP will get more than 180 seats in UP.
20. Yesterday it was Bank Nifty that brought down the markets, volatility was due to Weekly expiry.
21. Nifty future is likely to trade between 8850 and 8950 today.
22. I will sell Nifty 8500 Put if Nifty trades closer to 8850 and 9100 Call option if Nifty trades closer to 8950.