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Pre Market Report, November 16, 2017

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November 16, 2017
3 comments
November 16, 2017
Time: 8.20 am

 Pre Market Report:
  1. US markets fell, Dow fell more than 100 points finally, after showing intraday recovery for the last few days.
  2. But Asian markets are mostly trading with some green tick.
  3. Our markets have fallen for 8 days.
  4. Usually the downtrend will be arrested after 7 or 8 trading sessions.
  5. Crude is also stabilising and that is a good news.
  6. The export data released day before yesterday evening could be a reason for yesterday's downfall.
  7. Nifty has fallen nearly 300 points in 3 days.
  8. FIIs are shorting in huge quantities.
  9. Every day they are selling for over Rs 2000 crores in F&O.
  10. Yesterday was the worst day for ADAG.
  11. Out of top 10 loser in F&O stocks, ADAG's all 5 stocks appered.
  12. RCom and Reliance Capital both fell more than 10% and have come under F&O ban.
  13. The remaining 3 stocks fell more than 7% at closing, but fell more than 10% intraday.
  14. The results season is over, so there will be no unplesant surprises.
  15. Except SBI which shot up by 6% after the results, most stocks fell after the results.
  16. Worst was Pharma sector, most Pharma stocks fell after results.
  17. Pharma have not come out of long time bear.
  18. Calls are written aggressively. Today Bank Nifty weekly expiry may bring some volatility.
  19. Bank Nifty was better in this downfall. Nifty fell more than 300 points but bank nifty did not fall proportionally.
  20. We need some short covering rally but we need some trigger for that.
  21. India VIX keep moving higher everyday.
  22. At least for a day, India VIX should trend lower in order for markets to stabilise and move higher.
  23. Since 50DMA was also tested, markets may stabilise around this level.
  24. If there are no more bad news, markets may stabilise and try to move higher.
  25. But aggressive call writing will limit the upside move.
  26. Or at least, markets will not make significant move for the next few days, so that option premiums will fall.
  27. Yesterday I have also written lot of 10400 Call at every rise.
  28. SGX Nifty is trading almost flat.
  29. Bank Nifty will be in focus due to expiry.
  30. Nifty future should take support at yesterday's low.
  31. Resistance will be at 10220, if there is any short covering, it can extend to 10250 towards the end of the day.





Written By

Options Trader and Trainer

Comments

  1. greatearth16 November 2017 at 15:47

    Sir, today bank nifty closed @ 25515
    But 25500put closed @47
    Normally it has to close @ 00
    Why it is?

    ReplyDelete
    Replies
    1. P R Sundar17 November 2017 at 08:17

      For expiry, last 30 minutes weighted average price is taken as closing price. So closing price of Bank Nifty was 25447. Option buyers have to close the positions by themselves, otherwise they have to pay heavy penalty (higher STT). So they have squared up at Rs 47 while actual closing should be Rs 53.

      Delete
  2. greatearth17 November 2017 at 09:22

    Thanks sir.
    If option sellers not closed his positions in the expiry day for some reasons in this case also penalty??

    ReplyDelete

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