Pre Market Report, April 6, 2017 | Stocks and Commodities

April 6, 2017
Time: 8.45 am

Pre Market Report:

1. US markets fell in the second half of the session though it was trading firmly in Green in the first half.
2. Asian markets are down following US.
3. SGX Nifty is also down by about 60 points.
4. Since market is at a peak, even a small negative news, market tend to fall.
5. But nothing to worry about this fall as the fall was not due to any associated news flow.
6. I have sold Nifty 9000 Put and 9500 Call only, hence no problem.
7. Similarly, Bank Nifty I sold 21000 Put and 22000 Call with a good premium.
8. RBI policy today will add to the volatility.
9. Even in weekly options, I have sold Bank Nifty 21000 Put and 22000 Call. Yesterday when there was a spike in Banki Nifty, I sold Bank Nifty 21100 Call at Rs 2.50. I used all the surplus cash to create this position.
10. I will close the positions, if it falls below Rs 0.50, making Rs 2 per share profit of which Rs 1 per share will go towards brokerage.
11. Broker is also happy as he gets lot of brokerage and clients also happy as they get some return for idle money.
12. FIIs were net buyers in Cash market but DII were net sellers.
13. FIIs have bought in Index futures and sold in stock futures.
14. So the signal is mixed.
15. Maruti, L&T and Reliance are the three major contributers to index.
16. Those stocks may consolidate for some time.
17. Banking stocks will be in focus, but I feel that RBI policy will be a non event and I expect RBI to maintain status quo, as interest rates have already come down significantly.
18. I have some surplus cash which I am looking to park in FD, I expect 8% return but no bank seems to be goving that kind of rates.
19. I was offered a car loan at 8.4% by a leading bank.
20. Today Nifty future is likely to take support at 9220 and resistance will be at 9320.