Pre Market Report, November 20, 2017 | Stocks and Commodities

November 20, 2017
Time: 8.35 am

Pre Market Report:

1. US markets closed lower on Friday.
2. So Asian markets are mostly negative.
3. SGX Nifty though opened higher around 10320, now trading lower around 10280.
4. But there are lot of news flow.
5. First, Bank Nifty is firmly above all time high on Friday while Nifty is significantly lower.
6. Now Yes Bank and Indus Ind Bank will be included in Sensex and that is a positive news for private sector banks.
7. Lupin and Cipla will be out of Sensex and now Sun Pharma is the only Sensex Pharma stock.
8. Pet Coke has been banned by Supreme court and that is negative for Cement stocks and good for Coal India.
9. L&T will be in focus due to large order it has received.
10. Friday was the first day in the last many months, both FIIs and DIIs have bought for more than Rs 1000 crores in Cash market.
11. However, the short covering is not happening in F&O.
12. Since this is the fourth week, Option premiums may startfalling due to theta effect.
13. So F&O players may try to prevent any abnormal moves for next few days.
14. Though Bank Nifty is at all time high, private sector banks have corrected from their peaks.
15. It is because of PSU Banks, Bank Nifty is at all time high.
16. It is a matter of time, private sector banks will catch up. News like Yes Bank and IndusInd Bank being included in Sensex may help.
17. IndusInd Bank has corrected nearly rs 200 in this downfall.
18. Yes Bank also corrected nearly 25% from the peak.
19. This month has been volatile. Nifty future fell from 10500 plus to 10100 and then shot from there. Already there was a swing of 600 points.
20. We still have another 9 days to go.
21. Highest open interest among Calls is at 10500. So that will be a huge resistance.
22. I expect Nifty future to trade between 10200 and 10500 for the next two weeks.
23. So I am planning to sell 10500 Call on every rise and planning to sell 10100 Put on every dip. I am keeping another 100 point buffer on the downside as High Open Interest is there more or less equally at 10000 and 10200.
24. Bank Nifty is more bullish than Nifty. On Friday though FIIs have bought in Cash market for over Rs 1000 crores, it is not time to be very bullish.
25. That is because, their  buying coincided with HDFC Life listing. Probably they have bought HDFC Life in huge quantities. In that case, it is nothing to do with Nifty.
26. That could be one reason why SGX Nifty is weak now.
27. So Nifty may go along with world market now, Global cues may play an important role now.
28. German political developments will have to be watched carefully.
29. For today Nifty future may take support at 10260. Resistance may come at Friday's high.