Pre Market Report, December 6, 2017 | Stocks and Commodities

December 6, 2017
Time: 8.50 am

Pre Market Report:

1. US markets closed lower.
2. Asian markets are also lower.
3. SGX Nifty is trading around 10100.
4. That is a gap down of about 40 to 45 points, which is not a good sign for bulls.
5. Yesterday 10095 was breached due to Gujarat opinion poll results.
6. Today again it will be breached due to bad Global cues.
7. Yesterday Bank Nifty played an important role in intraday recovery.
8. Today that will be very volatile due to RBI policy.
9. Manufacturing PMI came at one year high but Service PMI came at one year low.
10. GDP data came better but Fiscal deficit data came bad.
11. So there are some confused signals from Economy.
12. So Gujarat state election results will play a more important role in market direction.,
13. I am selling Call options whenever there is intraday move of more than 50 points on the higher side.
14. I am not selling any Put options as I already have lot of Put options.
15. Bank Nifty option premiums, particularly weekly options, may collapse after RBI policy due to fall in IV.
16. Yesterday I sold Bank Nifty weekly options 25500CE, 25600CE and 25700CE.
17. I also sold Bank Nifty weekly options 24700PE, 24600PE and 24500PE.
18. In Nifty I sold 10500CE and 10600CE.
19. FIIs have started selling aggressively and they have sold for about Rs 1500 crores in Cash market.
20. After buying just for one day, FIIs have started selling in huge quantities in Index Futures. More than Rs 2000 crores of selling in Index futures yesterday.
21. That could be due to the fact that Nifty broke the double bottom yesterday.
22. When the entire world markets were moving higher, we moved lower due to local cues.
23. Now when the world is moving lower, we also have to move lower, that is the reality.
24. RBI policy is just a reason for market, otherwise it is going to be a non event.
25. I assume that RBI will talk Dovish after the policy. (How Urjit Patel will do bad things to Narendra Modi, that too just ahead of Gujarat elections?)
26. So markets will likely to consolidate with huge volatility.
27. Nifty future should take support at 10080.
28. Resistance will be at 10180.