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

February 16, 2018
Time: 9 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are positive.
3. Many Asian markets are closed due to Chinese New Year. (China markets will be closed for one week and other Chinese dominated markets will be closed for three days)
4. SGX Nifty is trading about 30 points higher.
5. When Global markets are in the recovery path, India is haunted with PNB Scam.
6. There has been huge intraday volatility in India for the last many days.
7. Despite huge volatility, Nifty has not broken the panic low of 10300.
8. Bank Nifty also did not break panic low of 25000.
9. Yesterday despite the huge volatility, highest open interest among Puts is at 10500.
10. Highest Open Interest addition was also at 10500.
11. So Option sellers believe that Nifty is going to expire above 10400.
12. That is a big positive for markets.
13. Going forward, we can expect India VIX to fall further.
14. PSU Banks may continue to drag the bank nifty from recovery.
15. Private sector banks may recover faster.
16. But other sector may do well to support Nifty.
17. There may be some sharp move towards the end of the day as today is Friday.
18. Volatility may go down further as even US markets are closed on Monday.
19. It is time to do ratio spread in Puts. Buy 10400PE, sell 10350PE, 10300PE, 10200PE, 10100PE, 10000PE.
20. Due to time value this strategy will give good profits.
21. Nifty is likely to trade within the yesterday's range.