Pre Market Report, August 16, 2017 | Stocks and Commodities

August 16, 2017
Time: 8.35 am

Pre Market Report:

1. We are opening after one day holiday.
2. Yesterday SGX Nifty fell by 60 points intraday suddenly.
3. That was due to sudden fall in Hong Kong market.
4. Anything happen to Hong Kong market, people interpret it as problem between India and China (Hong Kong market is dominated by chinese shares).
5. But Hong Kong market fell due to local cues.
6. There was some stone pelting by Chinese and Indian soldiers, at each other.
7. A chinese submaraine was spotted 300 nautica miles away from Kanyakumari, the southern most part of India.
8. Chinese soldiers did not take part in ceremonial Independence day function organised by Indian soldiers.
9. They were invited as usual, they used to attend every year, but this time they decided to skip to show their displeasure.
10. So the Indi-China problem has not died down.
11. But at the same time, North Korea decided to postpone the ICBM lauch towards US island.
12. That is a big relief for world markets.
13. But once again, it is not abandoned, it is just postponed, so the threat is live.
14. But both US and North Korea using soft languages now.
15. Our markets bounced back due to technical set up.
16. But going forward, markets are likely to consolidate.
17. Nifty future actual closing was 9808 and weighted average closing was 9815, now SGX Nifty is trading between these two figures.
18. After big moves for last 5 trading sessions, markets are likely to consolidate with small moves.
19. Big move on either side is not good.
20. Bank Nifty underperformed yesterday, due to PSU pack.
21. Inflation was up but still within comfortable zone.
22. So the CPI inflation data may be a non event for markets.
23. India VIX is likely to follow as people expected some bad news from borders during Independent day celebrations.
24. People also expected PM to mention Doklam issue, which may trigger the problem at the border.
25. But PM has carefully avoided mentioning both Pakistan and China.
26. But yesterday Pakistan markets fell by 3%, as they were also expecting something bad.
27. But overall Independent Day celebrations went smoothly without any big problems.
28. So time to be cautious, sell Puts at 9400 and below if you really want to keep Puts.
29. Otherwise, better avoid selling Puts.
30. On any bounce, we can sell 10150CE and above.
31. There are only 11 more trading sessions including today.
32. Yesterday I sold Bank Nifty 24000PE, 23800PE expiring tomorrow.
33. If markets do not fall today, the premium will collapse.
34. Nifty future may trade between 9760 and 9840.