Pre Market Report, January 12, 2018 | Stocks and Commodities

January 12, 2018
Time: 8.45 am

Pre Market Report:

1. US markets closed higher, dream run continues.
2. Asian markets are mostly higher.
3. SGX Nifty is trading around 10700.
4. I have been saying that Nifty has broken out after a big consolidation for 5 months.
5. So the breakout will be more powerful.
6. I will not be surprised if Nifty crosses 11,000 in the next few weeks.
7. Yesterday was a good day for bears to bring down the market but they have failed.
8. Markets closed at all time closing high despite not so good results from IndusInd bank.
9. Results season not started well, we will see how TCS trades today.
10. TCS and Infosys will be in focus.
11. There was huge addition in 10600PE. This indicates the bullishness in the market.
12. However Bank Nifty has been under performing.
13. There was unwinding of 10700CE and 10800CE.
14. FIIs have sold for second day in Cash market but DIIs have bought more than what FIIs have sold for second day.
15. There may be some profit booking towards the end of the day.
16. I am planning to sell Nifty 12500CE in December expiry to hedge my Mutual Fund portfolio.
17. I will be doing ratio spread in Infosys similar to what I did in IndusInd Bank.
18. I sold lot of naked call options in IndusInd Bank at 1820CE, 1840CE and 1860CE, all have given good results.
19. I tend to sell far out of money call options ahead of key results just to make sure my mutual fund portfolio is not affected.
20. Infosys hit 52 week high yesterday, it will be in focus ahead of its results which will be declared after the market hours.
21. IIP and CPI inflation data will also be out today evening.
22. Nifty future is likely to trade between 10640 and 10740.