Pre Market Report, February 20, 2018 | Stocks and Commodities

February 20, 2018
Time: 8.20 am

Pre Market Report:

1. Our markets fell after a gap up opening for the last two days.
2. On Friday morning Nifty was above 10600 and yesterday afternoon it was below 10300.
3. Fall of more than 300 points in just two trading days.
4. Both Nifty and Bank Nifty future broke the panic low of Feb. 6.
5. Nifty broke 10300 and Bank Nifty 25000 intraday but recovered in the late afternoon.
6. Worst thing yesterday was that FIIs added short positions in F&O, in Cash market FII selling was more than DII buying.
7. All sectoral indices were down yesterday.
8. If Nifty breaks below yesterday's low, then panic will set in.
9. As long as yesterday's low is not broken, we can expect Nifty to consolidate between 10300 and 10500.
10. Just three days away, both Call and Put options are trading with huge premium.
11. Nifty 10700CE is trading Rs 7 to Rs 8 which is a very high premium.
12. Same was the case with Nifty 10000PE.
13. If you have surplus cash, then can sell both 10000PE and 10700CE.
14. If at any panic comes, that is likely to come on expiry day.
15. So both 10000PE and 10700CE will be safe.
16. Premiums are not really shooting up in March series.
17. It is better to stay away from Bank Nifty as it is likely to be very volatile.
18. Bank Nifty tend to make 500 points move everyday.
19. If there is any bounce in Bank Nifty then we can sell 25600 and above call options.
20. Nifty will take support only at yesterday's low.
21. Resistance will be at yesterday's high.