Pre Market Report, January 3, 2018 | Stocks and Commodities

January 3, 2018
Time: 8.25 am

Pre Market Report:

1. US markets closed at record high in the first trading session of 2018.
2. Asian markets are mostly positive.
3. SGX Nifty is higher by 30 points at this point of time.
4. Core sector growth at 13 month high, Manufacturing PMI at 5 year high, China Manufacturing PMI above 51, Hong Seng at 10 year high, Commercial Vehicles sales shot up by more than 80% in December 2017, yet our markets did not do well.
5. FIIs were net buyers for four consecutive sessions after more than 5 months of selling.
6. The only problem for India is the crude prices.
7. That will go down anyway as the world is turning to electric cars.
8. We spend most of our foreign exchange for Gold and Crude.
9. That may change with the mindset of people changing about Gold and initiatives of electric vehicles.
10. So the longer term story is intact for India.
11. People say stock markets are trading at high valuation, but they do not realise that Real estate valuations are even higher.
12. With fight against black money, IT people losing edge due to US policies, NRIs facing troubles both from Gulf countries and Singapore, Real Estate is not likely to pick up anytime soon.
13. No Gold, No Real Estate, No bank FD, so TINA (There Is No Alternate) effect is working in favour of stock market.
14. Nifty has been trading between 10000 and 10500 for the past 5 months.
15. Any breakout will be powerful.
16. So I am not selling any Calls.
17. I am only selling Puts.
18. Yesterday I sold 10000, 9900, 9800, 9700, 9600PE.
19. In case if Nifty breaks 10400, I might buy some 10100PE for hedge.
20. For the last two days, markets are in compression mode.
21. Sooner than later, it will go for expansion mode.
22. With early results from TCS, Infosys, IndusInd Bank, we can expect 10800 for Nifty by the end of this expiry, if everything goes well.
23. I have invested heavily in mutual funds in the last few days.
24. Bank Nifty will be in focus as it has been under performing.
25. From July end to January beginning, Bank Nifty has not gone up by even 1%.
26. Nifty future may trade between 10450 and 10550.