Pre Market Report, September 15, 2017 | Stocks and Commodities

September 15, 2017
Time: 8.20 am

Pre Market Report:

1. Once again North Korea launched a missile over Japan.
2. But this time there are some differences.
3. First, it is not only North Korea, even South Korea launced a missile, but not over Japan.
4. Last time when the missile was launched, markets were is a shock, but this everyone expected North Korea to do this and therefore, it is not a surprise.
5. In fact last time China markets were in Green (remember it is a North Korea friendly country), now it is in Red.
6. Missile flew ove Japan, but Japan market is up today.
7. All markets reacted too negatively are not reacting much now and all markets that reacted positively or not much negatively (China, Hong Kong) are reacting negtaively now.
8. Coming to our markets, SGX Nifty is trading about 60 points lower.
9. But this is not purely due to missile launch.
10. FIIs keep selling, yesterday FIIs have sold for about Rs 1300 crores.
11. Just after seeing that data, SGX Nifty fell 40 points yesterday evening.
12. Anyway we are very close to all time high and some profit booking is expected.
13. Markets need to consolidate for some more time and then gather momentum.
14. Once 10150 is crossed, 10300 will come in two to three days.
15. Europen and American futures are not showing any big negative reaction to North Korea news.
16. So our problem is not actually North Korea, our problem is FII selling.
17. For the last one and half month, they keep selling every day.
18. ICICI Lombard IPO opens today. We need to see the subscription figures. That will affect ICICI Bank.
19. I do not see any panic, except knee jerk reaction.
20. But knee jerk reaction will be there throughout the day as markets will be closed for next two days.
21. Remain optimistic but at the same time be cautious.
22. I plan to sell December 9000PE, if it rises above Rs 40 as I squared off at Rs 40 day before yesterday.
23. Usually I squae off long term options on Wendesday (if proofitable) then deploy the funds in weekly options, (this time I sold 24500PE and 25100CE and gained more than Rs 5 in both sides) and then keep the cash.
24. In case if long term options price increase, then again I redeploy.
25. SGX panic low was 9990. But panic subsided now. Again the liquidity would have been low at SGX, that could the reason for the panic low below 10000.
26. Here Nifty future should take support at 10020. Resistance will be at 10120.
27. Earlier, on some occassions, I have seen markets rising significantly when there was a bad news.
28. I feel that all time high will be taken out when nobody expects it.
29. But the chances for that is very very low today.
30. Let us see what happens today. 
31. Bank Nifty has been out performing Nifty is the last two days.
32. We need to see how Bank Nifty performs today.