Pre Market Report, December 5, 2017 | Stocks and Commodities

December 5, 2017
Time: 8 am

Pre Market Report:

1. US markets came under profit booking finally.
2. Nasdaq fell nearly 2% as tech stocks fell.
3. Dow fell about 200 points from intraday high.
4. SGX Nifty hit a low of 10105, which is about 20 points lower than yesterday's low of 10126 here.
5. But it has recovered from that low and now trading around 10135.
6. Some Asian markets also recovered from low levels.
7. Crude prices rising again is a problem for India.
8. Nift spot made a double bottom at 10095 yesterday.
9. As long as that bottom holds, we can expect some recovery.
10. If that level is broken, we can expect another slide of 80 to 100 points in Nifty.
11. Bank Nifty spot also touched 25000 and then recovered.
12. So Nifty spot 10095 and Bank Nifty spot 25000 are very important levels.
13. Opinion polls indicate a narrow victory for BJP in Gujarat.
14. Most Asian markets are steady except Japan and Hong Kong.
15. In October series, Nifty made double bottom at 9700, there were panic in the first few days of the series, India VIX crossed 15 in the initial days, but October series ended with a gain of 600 points in Nifty.
16. Will that happen in December series? No one knows.
17. This time the fall was fast and furious.
18. Who knows, even the recovery can be that way.
19. Highest open interest continue to be at 10000PE.
20. I am holding lot of 10000PE.
21. If Nifty spot breaks 10095, I am planning to close these positions and move to 9900PE.
22. In case of a sudden downtrend, I wanted some safety. So I bought 10050PE yesterday and sold double to quantity of 9850PE.
23. Similarly I bought Bank Nifty 25000PE and sold double the quantity of 24500PE.
24. In addition I sold lot of Bank Nifty weekly Options from 25500 to 26000.
25. In Nifty, I sold 10400 and 10500CE.
26. Yesterday for the first time, FIIs have bought both Index futures and Stock futures. That is a good sign.
27. FIIs have sold in Cash market but DIIs have bought for double the amount.
28. Bank Nifty will be in focus ahead of RBI policy.
29. Nifty future should take support at 10080.
30. Resistance will be at 10200.