Pre Market Report, December 22, 2017 | Stocks and Commodities

December 22, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed higher once again.
2. Asian markets are mostly positive.
3. SGX Nifty is almost flat.
4. Today is Friday, lone weekend ahead.
5. Moreover, most FIIs will go for holidays from tomorrow until the new year.
6. So today is the last chance for them to sell, as they continue to sell everyday.
7. We have under performed the world markets for the last few months, so there may be some sharp short covering rally towards the end of the day.
8. So last one hour of trade today will be very interesting.
9. Highest open interest among Puts is at 10000 and Calls is at 10500.
10. So the upside seems to be capped at 10600.
11. Due to year end, markets are expected to be range bound.
12. Nifty may trade between 10380 and 10620 for the next four trading sessions.
13. I sold Nifty 10350PE and 10600CE expecting this range.
14. In monthly options, I have sold 24900, 24800, 24700, 24600PE and some 26200CE.
15. Banking stocks under performed in the last two days.
16. We can expect some out performance today.
17. There are no market moving news for the next four days.
18. Big trend will set in only after January 1, 2018.
19. It will be interesting to see the behaviour of FIIs after the longest streak of selling from August to December.
20. Both ICICI Bank, HDFC Bank ADRs are up.
21. This is the time for option writers to eat the premium.
22. I have sold 10200PE, 10100PE, 10000PE and 10700CE, all expected to move towards zero.
23. Today we can expect the Nifty to trade between 10420 and 10520.
24. Today morning, SGX Nifty made few huge swings between 10450 and 10520.