Pre Market Report, July 11, 2017 | Stocks and Commodities

July 11, 2017
Time: 8.20 am

Pre Market Report:

1. US markets ended mixed.
2. But Asian markets are mostly higher.
3. SGX Nifty is trading slightly more than 9800.
4. We were under performing world markets due to the fear of GST implementation glitch.
5. Once that fear was over, our markets are out performing and catching up with world markets.
6. Everyone thought markets will come down due to P Note issue.
7. In fact there was an article in Hindubusinessline news paper.
8. I replied to that article by saying that P Note money is not all 'long' money, major portion of that money is 'short' money.
9. So there is no reason for markets to fall, but knee jerk reaction is not ruled out.
10. That knee jerk recation was seen in SGX Nifty yesterday morning when SGX Nifty hit a low of 9625.
11. So SGX Nifty swung 175 points intraday yesterday, when was the last time we have seen such a swing?
12. This P Note issue, I have to write a seperate article, that is such a big issue.
13. Now the markets have broken out, markets may consolidate from here and stock specific action will start.
14. Today IndusInd Bank results will decide the course of Bank Nifty.
15. But expectation is very high, I sold IndusInd Bank 1620 Call at Rs 8.50.
16. The reason, I am long in Bank Nifty and I do not want Bank Nifty to fall significantly.
17. Bank Nifty may fall significantly, only if there is a bad set of numbers from IndusInd Bank.
18. In that case, I will make some money from IndusInd Bank Call option.
19. Even if results are good, Implied Volatility will fall in this stock and I will able to come out without loss.
20. Since yesterday's rally was mainly due to short covering, the rally may not continue with full force.
21. This week Inflation data, IndusInd Bank results will influence banking stocks, TCS and Infy results will influence IT stocks.
22. Next week Reliance will come to focus due to AGM.
23. And then slowly corporate results will take the centre stage.
24. But I will not be surprised if Nifty hits the magical figure of 1000 by the end of this expiry.
25. If not, it is likely to hit in August series, if corporate results are good.
26. We can expect Nifty future to trade between 9740 and 9840 today.