Pre Market Report, December 21, 2017 | Stocks and Commodities

December 21, 2017
Time: 8.20 am

Pre Market Report:

1. US markets closed slightly lower after trading higher for most part of the session.
2. US Tax plan has been approved.
3. So it is the case of "Buy on rumor and sell on news".
4. But the selling is nothing compared to the rise in the last few months in anticipation of Tax cut.
5. Asian markets are mixed, mostly down.
6. US dollar index is down.
7. SGX nifty hit a low of 10430 and now trading around 10455.
8. Yesterday Nifty hit all time high, so markets may consolidate before hotting another all time high.
9. We have under performed the world markets by huge margin in the last few weeks due to Gujarat elections.
10. So we may out perform in the next few weeks, so wee need not worry much about Global cues, unless it is really very bad.
11. FII selling continues in Cash market and they have sold for about Rs 1500 crores yesterday.
12. But they bought heavily in F&O, DIIs did not buy much.
13. So overall, it is neutral only.
14. Nifty 10500PE added about 12 lakh shares in open interest.
15. So the downside may be limited to 10380.
16. Once 10480 crossed, I closed my 10500CE and sold 10600CE and 10700CE.
17. Now I have 10000, 10100, 10200PE and 10600, 10700CE.
18. In Bank Nifty I have 25300PE and 25900CE in weekly options.
19. In monthly options, I have 24900, 24800, 24700, 24600PE.
20. Today we can expect Nifty to trade between 10420 and 10500.
21. Bank Nifty will be volatile due to weekly expiry.
22. Since the basket selling came yesterday around 3 pm, today there may not be any such basket selling.
23. Bank Nifty may trade between 25400 and 25900.