Pre Market Report, February 26, 2018 | Stocks and Commodities

February 26, 2018
Time: 8.45 am

Pre Market Report:

1. On Friday I could not write the "Pre Market Report" as I was held up with some personal work.
2. After first two weeks of commotion, world markets have stabilised.
3. But we started stabilising after another two weeks, due to Local cues like PNB Scam, etc.
4. We must not forget that the Primary trend is bullish.
5. This is just a normal profit booking.
6. HDFC Bank shot up from 1300 to 2000 in the last one to two years, now it has come down to 1850 levels.
7. Maruti shot up from Rs 5000 to 10000 in the last one to two years, now has come to 8700 levels.
8. Remember between 2003 and 2007, Sensex shot up 700% yet there was more than 10% correction 10 times, that means index corrected more than 10% every 6 months.
9. After a long time, corporate results have been good.
10. So markets may consolidate in March, Nifty may consolidate between 10000 and 11000.
11. In April, again, markets may resume the uptrend.
12. FII selling slowed down on Friday.
13. Some technical indicators showing bullishness.
14. Open Interest analysis also showing bullishness.
15. So it is time to sell put options.
16. I sold lot of 10000PE, 9900PE, 9800PE.
17. I will sell more PEs as and when thre is some intraday fall in the market.
18. On the higher side, I am not selling any Call option.
19. Waiting for some significant up move.
20. SGX Nifty is trading about 50 points higher which is a good gap up.
21. If that sustains, there may be more short covering towards the end of the day.
22. If Nifty crosses 10620, then next target will be 10700.
23. That will be a big resistance. 
24. On Feb. 6, Nifty gap down from 10700 to 10300, from there Nifty has been trading in this range.
25. Today Nifty future may trade between 10480 and 10580.