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

July 26, 2017
Time: 8.30 am

Pre Market Report:

1. US markets closed higher. Dow as up after many days of weakness.
2. Asian markets are mostly higher.
3. SGX Nifty is trading slightly positive.
4. Still the bears could not digest Nifty has hit 10000.
5. But today and tomorrow, anything can happen.
6. That is mainly due to P Note unwinding.
7. 90% of the P Note positions in derivatives will have to be closed by tomorrow.
8. Axis Bank came with results which is better than street expectation.
9. But the stock has already run up from about 500 to 550.
10. We need to see how it is reacting to the results.
11. Then today Yes Bank result is due.
12. Tomorrow ICICI Bank result is due.
13. So Bank Nifty will be in focus.
14. Last Friday, Bank Nifty low was close to 24000 and this Tuesday it is above 24500.
15. I made lot of money by selling Put options.
16. Yesterday India VIX fell more than 3%.
17. The trend may continue today and tomorrow also.
18. FIIs once again have bout in F&O for more than Rs 1000 crores.
19. Highest open interest among Calls is still at 10000.
20. This indicates that even if Nifty crosses 10000, Nifty may not move significantly higher than 10000.
21. May be between 10000 and 10050.
22. Put selling is happening aggressively at 9900 and 9800.
23. I sold 9800 Put options for Rs 5. There are only 2 trading sessions, Nifty has to fall 80 points each day for me to make losses.
24. But, in my opinion, that is going to happen.
25. Yet that trade is giving more than 1.5% return.
26. That is a fantastic return, considering the low risk.
27. HDFC will also be in focus ahead of its results.
28. Expect market to be volatile.
29. Bank Nifty will be in focus due to Axis Bank, Yes Bank and ICICI Bank.
30. Nifty future may trade between 9940 and 10020.