Pre Market Report, November 3, 2017 | Stocks and Commodities

November 3, 2017
Time: 8.45 am

Pre Market Report:

1. Dow and S&P 500 closed in Green and Nasdaq closed slightly lower.
2. Jerome Powel has been chosen as Fed chairman.
3. Asian markets are reacting positively but ahead of key US jobs data, the conviction is not there.
4. SGX Nifty opened at 10490 but fell and now trading around 10460.
5. Yesterday is a remarkable day for one reason, i.e. FII buying.
6. All these days bears argued that FIIs keep selling since August 1.
7. Since August 1, FIIs have been selling, in between they bought but just for one day, the next day started selling.
8. But yesterday was the first time in the last few months, FIIs have bought for two consecutive days, that too for more than Rs 1000 crore.
9. Bull market is born out of pessimism, grows out of skeptism, mature out of optimism, die out of Euphorea.
10. Now we are the end of skeptism and the beginning of optimism.
11. This is just my opinion and I need further confirmation in the next few days.
12. Bears were talking of low GDP, FII selling, Demonetisation and GST.
13. Demonetisation and GST are debatable, while GDP was down, later many economic data showed the turnaound in Economy.
14. Now FIIs also turning net buyers, there are no arguments for bears.
15. So normal profit booking can come but no crash.
16. So it is time to sell deep out of money PEs.
17. I have already bought 10100PE and sold 10000, 9900 to 9500PE in November.
18. And bought 10200PE and sold 10000, 9900, to 9200PEs in December.
19. Today onwards on every dip, I will try to do the same or even I will do the same in january series.
20. Now market has broken out of 9700-10200 range, 10200 will be the strong support.
21. So I keep another 200 points buffer and sell 10000PE and below.
22. In case if Nifty crosses 10500 with some voltaility, then I am planning to buy 10900CE in January and sell 11000, 11100 to 11500CE as I am expecting huge resistance around 11000.
23. Once I set up both CE and PE, I will have benefit on one side when markets make a big move.
24. Markets may go for consolidation mode once again ahead of key US jobs data.
25. DrReddy was up more than 5% and ICICI and HDFC Bank were up by more than a % in US ADR.
26. So Bank Nifty shoud do well.
27. I have sold both 25500PE and CE, the day before yesterday.
28. Just in one trading day got a profit of about Rs 80, that translates into Rs 3200 per lot, a return of 5% in just one for for the Capital deployed.
29. Pharma sector has broken out yesterday and Auro Pharama is a key stock to watch.
30. Nifty future may take support at yesterday's low and will face resistance at 10520.