Pre Market Report, October 10, 2017 | Stocks and Commodities

October 10, 2017
Time: 8.15 am

Pre Market Report:

1. US markets closed slightly lower.
2. But Asian markets are mostly in Green.
3. SGX Nifty is almost flat.
4. FII selling has slowed down while DII buying also slowed down.
5. Nifty closed at 61.8% Fibbonnacci retracement level.
6. This is a huge resistance level.
7. Markets will try to consolidate around this level.
8. Bank Nifty out performed yesterday after under performing Nifty for the last many days.
9. Highest open interest among Puts is at 9800.
10. But nearly 10 lakh shares added open interest at 10000PE.
11. About 3 lakh shares added in the open interest at 10000CE.
12. Assuming that this 3 lakh are the short straddle set up, still nearly 7 lakh shares added open interest at 10000PE are naked.
13. This is a bullish sign.
14. After today, there are only 10 trading sessions.
15. At the end of the day if Nifty is around 10000, then we can consider selling 10000CE and PE if Nifty is above 10020, then 10100CE and PE and if Nifty is below 9980, then sell 9900CE and PE.
16. Ans you should know how to manage if things go wrong. 
17. I bought 9800PE and then sold 9700, 9600 and 9500PE double the quantity each.
18. We can expect a rangebound trade with speculation picking up in Bank Nifty.
19. Surprisingly Bank Nifty 24500PE has the highest open interest.
20. Nifty may trade between 9660 and 10050.