Pre Market Report, May 26, 2017 | Stocks and Commodities

May 26, 2017
Time: 8.30 am

Pre Market Report:

1. US markets keep moving higher, closed higher for 6th day in a row.
2. Asian markets are mixed.
3. SGX Nifty is trading slightly lower.
4. The much awaited short covering came yesterday.
5. Nobody would have imagined the 650 point move in Bank Nifty.
6. Option sellers would have lost huge amount of money.
7. Luckily since I expected the short covering, I closed 22800, 22900, 23000 Call options in the morning itself.
8. Bank Nifty 22800 Call I closed at Rs 4 but at 3.30 it closed at Rs 390.
9. Though markets are up, it is up just due to index heavyweights.
10. Midcaps and small caps are still trading much lower compared to a week or two week before.
11. ICICI Bank and HDFC Bank led the rally in Bank Nifty.
12. We are entering into June series which is a 5 week series.
13. Option sellers will not like 5 week series as Time value will go down slowly.
14. Banking stocks will be in focus due to RBI policy.
15. We can expect Nifty to trade between 9200 and 9800 in this series.
16. One can sell Nifty 9200 Put and 9800 Call in this series.
17. Bank Nifty may trade between 22000 and 24000.
18. FIIs are net buyers yeasterday in Cash market.
19. Markets may consolidate between 9400 and 9600 for sometime.
20. Then breakout or breakdown may happen.
21. Chances of breakout is very high.