Pre Market Report, October 9, 2017 | Stocks and Commodities

October 9, 2017
Time: 8.15 am

Pre Market Report:

1. US markets ended moxed on Friday despite a shocking jobs data.
2. US Economy was expected to add 9000 jobs but lost 33000 jobs mainly due to Hurricane Irma and Harvey.
3. Many important Asian markets are closed.
4. South Korea, Japan, Taiwan markets are closed.
5. Over the weekend China central bank reduced Reserve Ratio and therefore China markets are up.
6. GST news on Friday evening will be factored in today.
7. Export related and jewellery related stocks are likely to be major beneficiary of this GST news.
8. The most important news is that after recoed inflow of Rs 12000 crore to Mutual Funds in July and Rs 20000 crore in August, in September the inflow was Rs 22,000 crores.
9. These figures are only equity fund flows only but majority og HNIs invest in Balanced Fund.
10. Despite all these positive data, SGX Nifty is trading around 9980.
11. SGX Nifty hit a low of 9963 in the morning.
12. After 3 spectaculay rise, Nifty is likely to consolidate for next few days until corporate results pouring in.
13. IndusInd Bank, Kotak Bank, TCS and Reliance are the key corporate results due this week.
14. So once again it is a tug of war between DIIs and FIIs.
15. So the best strategy now is to sell Call option if Nifty moves higher by 50 points from intraday low and sell Put option if Nifty moves more than 50 points down from intraday high.
16. On Friday I bought 9800PE and sold double the quantity of 9700 and 9600PE.
17. This is because I stronly believe 9700 will be a good support for this month as Nifty has made double bottom around this level.
18. Moreover there are only 13 more trading sessions this month due to 2 days public holidays.
19. So the time value will play a big role as long as markets are not falling dratically.
20. We can expect Nifty future to face resistance at 10020 and support will be at 9960.