Pre Market Report, January 29, 2018 | Stocks and Commodities

January 29, 2018
Time: 8.40 am

Pre Market Report:

1. World markets continued the bull run while we were closed for Republic day holiday on Friday.
2. On Thursday, markets were highly volatile due to expiry.
3. Bank Nifty February expiry closed almost 100 points discount to spot.
4. Nifty also closed at a discount.
5. Today SGX Nifty is up by 80 points.
6. But Nifty spot may not go up that much, future premium may increase.
7. The range for Nifty is 10500-11500 going by the highest open interest data.
8. But markets may be highly volatile in the first part of the series, due to budget.
9. Today there are no important corporate results except HDFC.
10. I am not planning to create any positions today.
11. I am just waiting on sidelines for the India VIX to rise further.
12. The best strategy is to do ratio spread.
13. High risk people can consider straddle also.
14. I prefer to buy 10500PE and sell 10400, 10300, 10200, 10100, 10000PE.
15. I also plan to buy 11500CE, and sell 11600, 11700, 11800, 11900, 12000CE.
16. Crude continue to trade higher. Maruti fell after the results.
17. So IT and Banking may do well. Auto may not do well until Crude start correcting.
18. Today's huge gap up will panic short sellers. But markets may stabilise or may correct a bit after gap up.
19. There may be Calm Before Storm ahead of Budget also.
20. This budget is going to be the event of the year.
21. There are lot of positive and negative news floating around.