Pre Market Report, November 30, 2017 | Stocks and Commodities

November 30, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed mixed.
2. Banking stocks were up and technology stocks were down.
3. Asian markets are mostly down.
4. Asia index ex japan is down by 0.5%.
5. So SGX Nifty is also down by 0.5%.
6. As I have saying for the last few weeks, markets will make a bigger move only after GDP data.
7. Since 17th November, Nifty has been trading between 10300 and 10400.
8. Today also that may be the case.
9. If global cues is the reason for fall, then Bank Nifty should out perform the Nifty.
10. Yesterday I sold lot of 26000, 26100, 26200, 26300 call options.
11. The reason is that Bank Nifty fell after struggling to cross 26000.
12. So I will be making decent profit today.
13. But at the same time, I also have lot of Put options, if Bank Nifty falls drastically, then I may be in trouble.
14. Markets may open in little panic around 10300 but I expect the markets to stabilise after that.
15. I will not be surprised if there is any short covering towards the end of the day ahead of GDP data.
16. But that short covering may be that strong to make Nifty to close positive.
17. Volatility will be high as expiry related issues will dominate the market.
18. FIIs have turned net sellers again and DIIs have become equal buyers.
19. FIIs are selling not because they have a bad opinion about India.
20. They are selling as they find better opportunity in Developed markets.
21. Once the valuation becomes to high there, the same people will turn focus here.
22. DIIs are getting huge flow and until then DIIs will support the market.
23. So I feel today's fall is a good opportunity for long term investors.
24. Today I am planning to sell call options from 25900.
25. No put option selling today.
26. In Nifty I am planning to sell 10400 Call option which may open around Rs 2 to Rs 4.
27. These are intraday trades with huge leverage.
28. Nifty future may trade between 10280 and 10380.