Pre Market Report, December 8, 2017 | Stocks and Commodities

December 8, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are mostly higher.
3. Yesterday's up move in India was a fantastic one.
4. I thought Bank Nifty will move higher by short covering.
5. But Nifty out performed Bank Nifty.
6. It seems that this correction is also a bull market correction.
7. All over the world, markets started moving higher after a small correction.
8. Hing Kong index fell more than 7% in this correction.
9. So we are not the worst performer.
10. Though markets shot up yesterday, FIIs have sold for more than Rs 1000 crore in Cash.
11. FIIs have sold heavily in both Index Futures and Stock Futures also.
12. As usual DIIs have supported the markets.
13. As I stated earlier, FIIs are likely to sell more in the days to come.
14. On Thursday evening Exit poll results will be out and there will be gap up or gap down on Friday.
15. Then on Monday markets will be reacting to actual results.
16. So these two days of trade is very important for this series.
17. Then after that it will be a consolidation for the rest of the series.
18. Open interest data suggests that Nifty is likely to trade between 10000 and 10500 in this entire series.
19. I am selling Call options at 10500 and above.
20. I am doing ratio spread in Puts.
21. I bought 10200PE and sold double the quantity of 10000PE. This has become delta neutral.
22. Even in Bank Nifty I bought 25000PE and then sold double the quantity of 24500PE. In just two trading days, I am sitting with a MTM profit of Rs 30 per share.
23. So the strategy ahead of Gujarat election should be like this: Sell far out of money call and ratio spread in Put.
24. I expect markets to consolidate after a good rally yesterday.
25. Nifty future may trade between 10150 and 10240.