Pre Market Report, February 27, 2018 | Stocks and Commodities

February 27, 2018
Time: 8.40 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are in Green.
3. SGX Nifty hit a high of 10665, now trading between 10630 and 10640.
4. Nifty will break a significant resistance today.
5. Two times, Nifty fell once it crossed 10600.
6. The next resistance will be 10700.
7. The big gap down happened from 10700 on Feb. 6.
8. FIIs have sold for more than Rs 1000 crores, but equally they bought in F&O.
9. Moreover DIIs have bought for more than what FIIs have sold.
10. Global cues continue to support.
11. I bought April 10400PE, sold March 10400PE and sold April 10000PE, 9900PE and 9800PE.
12. I am protecting the positions, if there is any gap down.
13. But at the same time, I strongly believe Nifty will not break 10000.
14. In fact, on January 31, I sold March 10000PE at Rs 26, it went up to Rs 187 and then now it is below Rs 26.
15. But during the gap down, MTM losses were very high, that could have been avoided, had there been some BUY options.
16. In addition, I sold Nifty 10200PE, 10000PE, 9900PE, 9800PE in March, sitting with good profits already.
17. I am following a technical where Supertrend (7,3), (14,2), 921,1) shows three Green arrows and three Green lines, I go long, similarly when all three arrows and lines show Red, I go short.
18. That technical indicators showed long day before yesterday when Nifty future was at 10500.
19. So I went long for high risk clients and sold Puts aggressively for low risk clients.
20. I sold 10000PE at Rs 40 day before yesterday, it closed at Rs 25 yesterday, giving 6% return in just one day.
21. For some high risk clients, I sold Bank Nifty 25500, 25400, 25300, 25200, 25100 and 25000PE.
22. All sold in weekly expiry, as long as there is no gap down, we will make very good profit.
23. In addition, I went short in Bank Nifty at 25600, then sold 25500PE in weekly as well as monthly, as well as sold monthly options of 25000, 24500, 24000, 23500, 23300PE.
24. I am bullish but having some short positions just in case if there is any gap down due to some bad news.
25. Coal India futures is trading at Rs 20 discount to Spot. Coal India will be declaring Interim Dividend.
26. I do not think the Interim Dividend will be anyway near Rs 20. The maximum I am expecting Is Rs 10 to Rs 15.
27. So it is wise to sell PE in Coal India.
28. I have bought Coal India for Rs 10 lakh about 6 months before at an average price of Rs 245.
29. So for the first time, I will get a significant amount as Dividend.
30. Nifty future is expected to trade between 10580 and 10680.