Pre Market Report, December , 2017 | Stocks and Commodities

December , 2017
Time: 8.35 am

Pre Market Report:

1. Nobody could understand why Nifty fell nearly 200 points from intraday high on Friday.
2. It was an all round selling.
3. At least on Thursday, Real estate Index was a gainer.
4. But on Friday all sectoral indices fell.
5. Fiscal deficit is a reason. But a fall of nearly 300 points in Nifty is surely a over reaction.
6. Crude prices is another problem.
7. Hong Kong market falling more sevearly is another reason.
8. Now Developed markets are going higher and emerging markets moving lower.
9. So global cues is of no use.
10. But the are some positives.
11. First, US Senate passing the tax cut bill.
12. When we have fallen so much before the world markets, what will happen if global markets also fall?
13. So that is averted due to the passage of Tax bill.
14. Second, FIIs have turned net buyers in Cash market despite such a big fall on Friday.
15. Third, BJP won most of the local body elections in UP. That will be sentimental positive for BJP to win Gujarat and HP.
16. Technically, Nifty has made double bottom.
17. Last time Nifty made double bottom around 9700, then shot up by 600 points in one month.
18. According to CNBC, if Nifty forms a low in the first trading session and if that low is held during the following week, then there will be a good bull run.
19. So our markets made a panic bottom on Friday, we need to see whether that low is held this week.
20. RBI policy is going to be a non event. So significant upside is ruled out in the next two weeks.
21. Only election results can make a big change.
22. But there are many positive news like better GDP data, better Manufacturing PMI data, better Core Sector Growth data, better auto sales, etc.
23. So in my view, Nifty should not break 10100.
24. If 10100 is broken, all my long bets will be closed.
25. I am selling Bank Nifty weekly options aggressively.
26. Both this week and next week weekly options will expire before exit poll results on December 14 and actual results on December 18.
27. I am also planning to buy 25000PE and sell double the quantity of 24500PE.
28. Bank Nifty may fall but not below 24500. So this strategy will give some profit if Bank Nifty moves higher. This strategy will give good profit if Bank Nifty falls but not below 24500.
29. If this is a bull market, then Nifty should bottom out here and move higher.
30. Nifty future should take support at 10120.
31. Resistance will be at 10220.