Pre Market Report, June 2, 2017 | Stocks and Commodities

June 2, 2017
Time: 8.15 am

Pre Market Report:

1. Yesterday I could not write "Pre Market Report" due to some unavoidable reasons.
2. I expected breakout yesterday.
3. But on Wednesday evening GDP data came which was a shocker.
4. So expected breakout did not happen yesterday.
5. Moreover Bank Nifty weekly option expiry added volatility to Banking stocks.
6. Yesterday Bank Nifty under performed Nifty.
7. The breakout is likely to happen today.
8. SGX Nifty is trading higher than all time high.
9. Now the GDP data event is over, markets will focus on RBI policy.
10. Last time RBI gave Hawkish comment, now with less than 3% inflation (RBI target is 2% to 6%), monsson forecast is very good, there is no reason for RBI to be Hawkish.
11. So Bank Nifty is likely to march higher next week.
12. But Volatility will be there due to RBI policy.
13. Nifty has been consolidating for the last 5 trading sessions, after breaking out on the last expiry day.
14. FIIs were net sellers in Cash market and showing mixed trend in F&O.
15. Market set up is very bullish and Nifty may scale to 9800 if there is a small rate cut by RBI.
16. DIIs continue to support the markets.
17. Day before yesterday I suggested selling 9700 Put, I sold 9700 put for Rs 158.
18. Despite Nifty falling yesterday, 9700 Put also keep falling.
19. Now I have sold 9400, 9300, 9200, 9100, 9000 Put and 9800, 10000, 10100 Calls.
20. Bank Nifty I sold only in weekly options and booked profit yesterday.
21. Yesterday made more than Rs 3 lakh brokerage for my broker and equivalent money as profit for my clients by doing intraday trades.
22. Bank Nifty weekly options are trading at very good premium this week also.
23. That is due to RBI policy next week.
24. Nifty future may face some resistance at 9700.
25. Support may come at 9620.