Pre Market Report, April 18, 2017 | Stocks and Commodities

April 18, 2017
Time: 8.15 am

Pre Market Report:

1. US markets were up yesterday.
2. But most Asian markets are down.
3. This is due to a news report that North Korea may go for an aggressive move after a failed attempt in a missile test on Sunday.
4. According to the report, North Korea may either go for another missile test at the earliest or may go for a Nuclear Test.
5. This news has dented the sentiment and Asian markets are reacting to this news.
6. SGX Nifty has fallen 40 points from morning high.
7. But underlying strength is there in our market.
8. When was the last time we have seen a stock shooting up more than 40% or sector going up more than 8%?
9. IT stocks will be under pressure due to Trump announcement on H1B visa today and TCS results today evening.
10. IndusInd Bank and Yes Bank will be in focus ahead of their results tomorrow.
11. I sold IndusInd Bank 1520 Call yesterday at Rs 5.5.
12. Since both these stocks have run up recently, they may not go much higher even if results are good, there may be some profit booking.
13. The results of these two banks will set the tone for Bank Nifty which has been out performing Nifty in the last few days.
14. Sun TV will be in focus due to political developements in Tamil Nadu.
15. Housing Finance companies will also be in focus as GRUH Finance declared a decent set of numbers.
16. Syria missile strike, Afghan largest non nuclear bomb, North Korea tension, there are plenty of Geo Political tensions, yet markets all over the world are showing resilience.
17. Once these things go out of picture, the rally may resume.
18. As I said in the beginning of this month, Nifty has been trading between 9000 and 9500.
19. I closed my positions in Nifty 9500 Call and moved to Nifty 9400 Call.
20. I am expecting some correction in May, so I sold Nifty Calls from 9500 to 9700 in May and 9700 to 10000 in June.
21. Nifty future is likely to trade between 9120 and 9220 today.