Pre Market Report, November 28, 2017 | Stocks and Commodities

November 28, 2017
Time: 8.45 am

Pre Market Report:

1. I could not write "Pre Market Report" yesterday as I had some problem with my internet connection.
2. By the time, I resolved that issue, market opened.
3. On Friday evening, S&P maintained status quo.
4. Yesterday morning Asian markets opened lower.
5. Both the factors contributed to the down fall in the morning yesterday.
6. Late afternoon, markets recovered by some short covering.
7. By that time Europe also recovered their initial losses.
8. On 17th November Moody upgraded India and Nifty shot up to trade between 10300 and 10400.
9. From their until yesterday Nifty could not break 10400.
10. It is a long consolidation, whenever this kind of thing happens, Nifty makes a big move in the last three days.
11. Last three days, Gamma effect will come to play.
12. So it is time to be cautious on both sides.
13. Bank Nifty has broken out as HDFC Bank did very well.
14. HDFC bank shot up more than Rs 60 in this series.
15. If ICICI Bank also picks up Bank Nifty can cross the magical figure of 26000.
16. PSU Banks are holding their gains.
17. Though Nifty is expected to expire between 10200 and 10500 as I have been saying for the last two weeks, it is always better to keep stop losses for trades.
18. Contrary to this big move theory in the last three days, there is every possibility Nifty may consolidate between 10300 and 10500.
19. The reason is that India GDP data will be out on Thursday evening.
20. So people may wait to see the important data. People say it will be above 7% compared to 5.7% last quarter.
21. GDP data, RBI policy, Fed policy, Gujarat and HP election results are the key events in December series.
22. So the action may be reserved for December series.
23. I have sold 10500 calls and 10200 puts heavily.
24. We need not give more importance to global cues as we have hugely under performed the world markets in the last one month despite Moody's upgrade.
25. Even on the long term horizon, I feel that markets have bottomed out.
26. For example, all Infra and Real estate stocks stopped falling and rising slowly.
27. These are the very long time bears. DLF had been trading between 100 and 200 for the last 10 years, now trading above Rs 200 consistently.
28. People may shout High Valuation, etc, but they all will catch up in the next few quarters.
29. Even for 2018, I am taking a bullish view with Nifty target of 12000.
30. When markets fell this month, I bought all private sector banks, equivalent to 1 lot in Futures, so that I can do hedging properly.
31. All stocks are doing well except ICICI Bank.
32. I also bought Reliance and Auro Pharma, but Auro Pharma is not doing well.
33. But I have sold many call options and collected more money than what I lost in Cash market.
34. Yesterday I sold Infosys 980 Put at Rs 6.20 and I am prepared to take delivery if Infosys closes below 980.
35. For today we can expect range bound market in the morning and may be some sharp move in the afternoon.
36. Nifty future should trade between yesterday' low and high.