Pre Market Report, January 17, 2018 | Stocks and Commodities

January 17, 2018
Time: 8.25 am

Pre Market Report:

1. US markets closed in Red after opening higher.
2. Dow fell more than 200 points intraday.
3. VIX shot up nearly 15% in US as markets fell from the peak.
4. But things are not really getting bad.
5. GE fell and Oil related stocks fell. Oil seems to have resistance at US$70.
6. Crude prices fell by more than a dollar yesterday triggering profit booking in Oil related stocks.
7. There was Put unwinding in 10700 and 10600PE yesterday.
8. There was Call writing at 10800 and 10900CE.
9. So the bullish momentum is out.
10. IT pack saved the Nifty.
11. After very long time, top 5 gainers from Nifty are from IT pack.
12. Bank Nifty was consolidating ahead of key results like Yes Bank, HDFC Bank, Kotak Bank and Axis Bank.
13. ICICI Bank continued to march higher. HDFC Bank and ICICI Bank, which contributes 50% to Bank Nifty, did not fall, so Bank Nifty was saved.
14. Though Global cues are not that good, we may not follow Global cues due to corporate results.
15. I am planning to buy 10700PE and sell double the quantity of 10600PE and 10500PE.
16. This is to ride the short term volatility.
17. Yesterday FIIs were net buyers in Cash and Stock Futures. 
18. We are going to see choppy trade today ahead of so many key results in the next two days.
19. Yes Bank and Bharati will be in focus ahead of their results.
20. Friday will be an important day for corporate results. HDFC bank, Kotak Bank, ITC, Reliance, all index heavyweights are set to declare results.
21. So we can see some action in the next three to four days.
22. Today, as long as 10680 is not broken, I will maintain long positions.
23. I will take some short positions if Nifty falls below 10680.
24. Nifty future is likely to be choppy and range bound.
25. Nifty future may trace between 10680 and 10750.