Pre Market Report, August 28, 2017 | Stocks and Commodities

August 28, 2017
Time: 8.30 am

Pre Market Report:

1. Asian markets started with negative bias. 
2. But after 7 am, Hong Kong and China markets opened positive and some of the losses have been recovered by other Asian markets.
3. SGX Nifty is trading around 9900, about 20 points higher.
4. The opening level for Nifty is higher than last Thursday's high.
5. Bank Nifty fell about 125 points in the last half an hour on Thursday.
6. So we need to see how Bank Nifty performs today.
7. PSU Banks were positive and Private Sector Banks were negative on Thursday.
8. Nifty is likley to trade between 9800 and 10000 until expiry.
9. North Korea launched 3 short range missiles on Saturday.
10. But that does not seems to be affecting the Asian markets today.
11. So the range of 9800 to 10000 is based on the assumption that there is no more geo political tension.
12. Next four days may be the time for option sellers to eat the premiums.
13. There is a possibility of a violent move of 200 to 250 points in Nifty on the higher side.
14. So I am careful while selling Call options.
15. But I have been selling Put options.
16. Nifty 9700 and below puts can be sold safely.
17. I also sold Bank Nifty 23500PE and 25000CE.
18. FII selling seems to be subsiding and FIIs were net buyers in F&O market.
19. DIIs have been buying aggressively.
20. Even yesterday there was a news report that said large amount of money from real estate is being diverted to stock market.
21. These are the first time investors who never had faith in stock market.
22. So even if there is a good correction, markets are likely to bounce back.
23. Today Nifty future may trade between 9860 and 9940.