Pre Market Report, January 16, 2018 | Stocks and Commodities

January 16, 2018
Time: 8.40 am

Pre Market Report:

1. US markets were closed yesterday.
2. But still Asian markets are mostly good.
3. SGX Nifty is also slightly higher by 10 to 20 points.
4. Bank Nifty has broken out yesterday.
5. Bank Nifty hit all time high yesterday.
6. Though markets were really very good, only HDFC, HDFC Bank, ICICI Bank and Kotak Bank contributed to much of the rally.
7. Most other stocks were trading sideways only.
8. Auto, Energy, Pharma stocks were down.
9. Today and tomorrow our markets are likely to consolidate.
10. That is because, our markets moved higher significantly in the last few days.
11. So consolidation is required before breaking out again.
12. Nifty 10700PE added more than 28 lakh shares in open interest.
13. Nifty 10600PE also added significant amount of shares in open interest.
14. So the downside seems to be very limited.
15. Most of the technical indicators showing bullish momentum.
16. Ratio spread strategy I did in IndusINd Bank and Infosys has given good profits.
17. Covered Call strategy I did in Nifty is also giving good profit.
18. Markets may consolidate for next few days and then depending on corporate results, market action will continue by the end of this week.
19. Yes Bank, Bharti, ITC, HDFC bank, Kotak Bank all set to declare the results by Friday.
20. Relinace will declare the results by Friday evening.
21. Most of these stocks are index heavy weights.
22. They can move the markets by 3% to 4% easily making Nifty 11,000 realistic.
23. But so far IndusInd Bank, TCS and Infosys have not reacted positively after the results.
24. Another school of thought is that 'if markets are doing so well when shares are not reacting well after the results, how the markets will do when shares reacts positively after the results?'
25. Anyway I forecasted the range of 10400-11000 for this month and it has been holding.
26. I make money whether markets go down or up, it is not a problem for me in trading.
27. But I have invested more than 7 crores in Mutual Funds, so I will be happy if markets move higher for investment profit.
28. I am planning to invest another 3 crore before budget in mutual funds.
29. Usually January trend continue for the rest of the year.
30. Tiday Nifty future may trade between 10720 and 10800.