Pre Market Report, October 24, 2017 | Stocks and Commodities

October 24, 2017
Time: 8.30 am

Pre Market Report:

1. US markets closed lower after rising for 6 consecutive days.
2. The main reason was GE which fell more than 6%.
3. It is like Axis Bank for our country, Axis bank fell nearly 15% and that dragged Bank Nifty by more than 1000 points.
4. In a bull market, slight disappointment brings sharp correction.
5. But Asian markets are more or less flat with positive bias.
6. SGX Nifty is trading about 10 points lower.
7. That is normal as Bank Nifty closed at the highest point of the day.
8. Today and tomorrow will be make or break day for us.
9. HDFC Bank results today during market hours, Infosys results today after market hours and Kotak Bank results tomorrow will be the key events to watch out.
10. Yesterday Nifty took support around 10120 and found resistance around 10220 as expected.
11. Today markets will be range bound and choppy until afternoon.
12. Once HDFC Bank declares results there may be some spike in Bank Nifty as there will be huge short positions in Bank Nifty.
13. Moreover yesterday volume was the highest in both Nifty future and Bank Nifty future, that shows that a significant move is imminent.
14. Highest open interest in Bank Nifty is now at 24000. But the difference between 24500 open interest and 24000 open interest is not much.
15. So still the possibility of upside movement is there in Bank Nifty.
16. Today the range for Nifty future may be 10150-10250.
17. Breach of any level, there will be some sharp move.
18. I am taking bullish view in Bank Nifty due to HDFC Bank, Kotak Bank, Yes Bank results, so I am planning to buy 1 lot of 24000PE and sell two lots of 23500PE, 23000PE, 22500PE, 22200PE, all in November series.
19. This month also I did the same strategy and made good profits.
20. If Nifty falls towards 10150, then we can sell 9800PE and 9900PE.
21. In my opinion, Nifty is going to expire above 10000.
22. I will not be surprised if Nifty expires at all time high.
23. So better be careful while selling Call options.