Pre Market Report, November 1, 2017 | Stocks and Commodities

November 1, 2017
Time: 8.40 am

Pre Market Report:

1. US markets, another record high.
2. Nobody seems to bother about Fed event.
3. Asian markets are firm.
4. SGX Nifty trading between 10410 and 10420.
5. Ease of doing business, India improved by 30 points to be in the top 100.
6. Core sector growth was very positive.
7. 200 people feared dead in North Korea due to landslide due to Nuclear tests. That may deter North Korea from conducting another test.
8. So there are many positives for markets to breakout.
9. Our markets were in consolidation mode for the last two days.
10. For the last two days the Nifty range was less than 40 points.
11. Bank Nifty 14500PE has the highest open interest and that is likely to be very strong support.
12. Long time underperforming stocks like ICICI Bank and Axis Bank and PSU Banks are doing well. So there is no reason for Bank Nifty to fall much from the current level.
13. But volatility is very high, even 24000PE weekly expiry was trading at more than Rs 5 yesterday. Just two days to expiry, this premium is very high.
14. At the same time 25700CE also was trading more than Rs 5, which is 700 points away.
15. So good time for option sellers to make money. I sold 24000PE, 24200PE and 25600CE and 25700CE yesterday n weekly options.
16. Yesterday Bank Nifty was up but still Put option premiums were up, perfect day to sell Put options.
17. Yesterday I sold 23500PE and 23000PE in Bank Nifty for monthly options.
18. As an hedge, I sold 26500CE. All strikes gave good premium. When India VIX falls, I am expecting to make good profits.
19. FIIs are succesfully selling for the fourth month but our markets are no longer in their control.
20. In 2008, when FIIs sold US$1 billion, Sensex fell 1000 points on an average.
21. Now they have sold more than US$5 billion, Sensex is at all time high.
22. But next few days, there are many IPOs mobilising large amount of money and hence there may be some temprory liquidity issue.
23. New India Assurance, HDFC Life, Bharat 22 all issues are above Rs 8000 crores.
24. November could be making history in IPOs mobilising largest amount from public.
25. For positional trade in Nifty, I bought December 10200PE and sold 10000 to 9500PE.
26. In November I bought 10000PE and sold from 9900 to 9500PE.
27. I am trying this strategy as I do not want to sell Call options as I am expecting markets to be bullish.
28. Nifty future may face resistance at 10450 and support may come at 10380.