Pre Market Report, October 31, 2017 | Stocks and Commodities

October 31, 2017
Time: 8.15 am

Pre Market Report:

1. On 27th October, I wrote "Pre Market Report" but forgot to publish.
2. Yesterday I could not write the report as I had to visit many banks to arrange for funds due to margin shortfall on last Wednesday.
3. But there were no i,portant developments in these two days.
4. Yesterday Bank Nifty did well with HDFC Bank and Yes Bank moving higher.
5. Other private sector banks went down a bit and PSU Banks compensated that.
6. Today Axis Bank is likely to shoot up due to the strong newsflow.
7. Though US markets fell Asian markets are mixed, some up and some down.
8. SGX Nifty is almost flat trading around 10390.
9. FIIs are selling for the fouth month. Though the amount of selling has come down, they are still selling is a concern.
10. Then in November, lot of Public issues will suck out huge liquidity.
11. HDFC Life and Bharat 22 alone will mobilise Rs 17000 crore in November.
12. I bought 10100PE and sold 10000, 9900, 9800, 9700, 9600, 9500PE in November.
13. I bought 10200PE and sold 10000, 9900, 9800, 9700, 9600, 9500PE in December. (Only 10000PE double the quantity).
14. Bank Nifty weekly options, I sold 24000PE last Friday at Rs 15. Yesterday again sold at Rs 6.50.
15. Today I am planning to buy January 10500CE and sell triple the quantity of 10800CE. Breakeven will be at 10970.
16. I am expecting some correction once Nifty reaches 11000. If Nifty is not reaching 11000, then notning to worry, above strategy will give some profit.
17. I also bought HDFC Bank future at 1800 and sold 1800CE at Rs 26 and 1900CE at Rs 9.
18. Since Nifty traded between 9700 and 10200 for the last three months and finally broke out, 10200 shoulf be the strong support.
19. If corporate results are not bad and Global cues continue to be good, then Nifty may not fall below 10200.
20. That is why I am selling Put options at 10000 and below keeping another 200 points buffer.
21. Upside I am not selling any Call option, if at all I sell, then my breakeven should be at 11000,
22. Moreover I will sell Call options only when RSI crosses 70.
23. So far it is below 70 for both Nifty and Bank Nifty.
24. Today Nifty is likely to face resistance around 10420.
25. Yesterday the Nifty range was leass than 35 points, a narroe range.
26. Premiums have come down in both Nifty and Bank Nifty.
27. Support may come at 10360 for Nifty.