Pre Market Report, February 13, 2018 | Stocks and Commodities

February 13, 2018
Time: 8.30 am

Pre Market Report:

1. SGX Nifty went for a roller coaster ride yesterday when we were closed.
2. SGX Nifty hit a high of 10587 and a low of 10448.
3. Yesterday night, US markets opened lower but recovered.
4. So now SGX Nifty is trading almost flat compared to Monday's close here.
5. This new rule about banking NPA is a hot news.
6. Bank Nifty may under perform.
7. Private sector banks seems to be stabilising.
8. Particularly HDFC twins are doing better.
9. So the worst seems to be over as long as there is no another shock from US.
10. Crude oil has fallen from almost US$70 to US$63 and that is a good news for Auto stocks.
11. Maruti seems to have bottomed out. Any fall near 9000 is an opportunity to go long.
12. Sensing this stability, on Monday I bought Bank Nifty 25000PE and sold double the quantity of 24900, 24800, 24700 and 24600PE. 
13. Expecting to make decent profit due to the time value as all these are done in weekly options.
14. In addition, I also bought 9900PE and sold 9800, 9700, 9600, 9500PE all in March series.
15. DIIs have started buying aggressively. So markets may stabilise or move higher.
16. I will be holding these positions as long as Nifty trades above 10300.
17. For few more days, US induced volatility will be there.
18. But we get lot of premiums due to this volatility.
19. Few days before, there was buyer at Rs 60 for Bank Nifty 23300PE, which was the lowest strike available for trading.
20. Nifty may trade between 10480 and 10620.