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

December 20, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed slightly lower.
2. Asian markets are mixed.
3. The hype behind the election results are over.
4. India VIX crashed by more than 20% in the last few days.
5. Option premiums have also collapsed.
6. Option sellers have made good money.
7. FII selling in Cash market continues.
8. If I am not wrong, this is the longest selling spree by FIIs in the Indian stock market history.
9. They have been selling since August and the selling continues into the fifth month.
10. But markets did not fall much.
11. Last time in 2008 when FIIs sold, Sensex fell 1000 points for every one billion of FII selling.
12. Lot of people, including most the media, are bearish. As long as these people are bearish, markets will continue to rise.
13. Coming to our trade, Nifty 10000PE and 10500CE are the strikes which have highest open interest since the beginning of this month
14. One time Nifty future (in Singapore) hit a low of 10020, and yesterday it hit a high of 10476.
15. But it was very volatile between these two figures.
16. If Nifty future crosses 10480, then it is better to shift 10500CE to 10600 or 10550, depending on the time and momentum.
17. HDFC Bank will be in focus due to Fund raising program.
18. HDFC will also be in focus as HDFC will fund HDFC Bank.
19. Auto stocks were on fire yesterday, Maruti shot up close to 10000 figure.
20. Another auto stock after Eicher to touch the magical figure of 10000.
21. Nifty future is likely to trade range bound between 10400 and 10480 as there are no major market moving events.
22. Nifty is likely to consolidate for next few days.