Pre Market Report, August 7, 2017 | Stocks and Commodities

August 7, 2017
Time: 8.15 am

Pre Market Report:

1. One more Monday, one more good day for bulls.
2. On Friday US markets were higher on the back of good Jobs data.
3. Today Asian markets are mostly higher.
4. In fact we have under performed the world markets in August.
5. That may be due to huge out performance last month on the back of P Note related short covering.
6. SGX Nifty is almost flat, trading around 10110.
7. For the first time in the last few days, India VIX fell on Friday.
8. Rupee closed at 2 year high is a very good news for markets.
9. However FIIs were net sellers both in Cash and F&O.
10. After selling for two days, DIIs have bought for much more than what they have sold in the previous two days.
11. Tata Steel will be in focus ahead of its results.
12. I am planning to sell 540 PE and 630 CE in Tata Steel. Results will be out after the market hours. So gap up or gap down is expected tomorrow morning.
13. After a long time, I see Call option premiums are higher than Put option premiums.
14. That shows the bullishness of the markets.
15. On Friday, I sold Reliance 1600 PE and 1700 CE.
16. Earlier on August 1, I sold Bank Nifty 23000PE, 23500PE, 24000PE, 25200PE, 25200CE, 26000CE, 26500CE, that has been doing well.
17. Markets are likely to consolidate for next few days.
18. Bank Nifty will make significant moves only after SBI, Bank of Baroda results at the end of this week.
19. I expect Nifty future to trade between 9980 and 10220 this week. This is assuming that everything is normal.
20. Focus may shift to midcaps and small caps as many companies will declare results.
21. Today Nifty future may trade between 10080 and 10180.