Pre Market Report, November 21, 2017 | Stocks and Commodities

November 21, 2017
Time: 8.40 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are also mostly higher.
3. Trump announced North Korea as state sponsored terrorist country.
4. Just after this news brokeout, SGX Nifty fell about 30 points but recovered after Hong Kong market opened.
5. Now SGX Nifty is trading about 30 points higher.
6. Yesterday FIIs have turned net sellers.
7. I mentioned yesterday that Fridya's buying was probably HDFC Life buyibg.
8. So yesterday they have sold as expected.
9. Markets are consolidating the gain made in the last two days of last week.
10. Option premiums are falling as India VIX is on the downward trajectory.
11. As I have mentioned yesterday, Nifty is likely to trade between 10200 and 10500.
12. Nifty 10200 was the last swing high and hence that should be a good support.
13. Nifty 10500 was the recent high, so there will be huge resistance.
14. Bank Nifty is looking very strong. HDFC Bank, Kotak Bank, Yes Bank, IndusInd Bank all doing very well.
15. I do have long positions in all private sector banks, 1 lot each.
16. I bought Bank Nifty 25800CE 5 lots and sold 26000CE 10 lots and 26500CE 5 lots.
17. I am taking moderately bullish to bearish view.
18. My breakeven is above 26200, so that is not likely to cross immediately.
19. I also have lot of put options at 25000, 24500 and 24000.
20. Expect Nifty future to face resistance at 10380 and support will be at yesterday's low.