Pre Market Report, July 7, 2018 | Stocks and Commodities

July 7, 2018
Time: 8.55 am

Pre Market Report:

1. There was a good buying momentum in our markets on last Thursday and Friday.
2. Maruti, Tata Motors shot up by more than 6% in two to three days.
3. This has happened when the entire world markets were under pressure due to US-China Trade war.
4. Now the trade war fear seems to have gone.
5. Asian markets are mostly higher with Hang Seng up by more than 400 points.
6. SGX Nifty is trading higher than Friday's high here.
7. Since this uptrend coincides with the results season, markets may breakout if corporate results are good.
8. IndusInd Bank and TCS will kick start the results season tomorrow.
9. Infy will declare results on Friday.
10. On Friday I sold Bank Nifty Weekly Options 26000PE and 27000CE.
11. If markets breakout, I may have to adjust the positions.
12. If Bank Nifty trades firmly above 26600, then there is a possibility of testing 27000 by this week.
13. IndusInd results will be the key factor for Bank Nifty.
14. ICICI Bank has been under performing, so watch for any short covering in that counter.
15. If Nifty trades firmly above 10820, then the broader range for Nifty will be 10600 - 11000.
16. If corporate results continue to be good, then we may even test the all time time high.
17. Overall I am taking a bullish view.
18. With compulsory exposure margin and Additional Surveillance Margin, the Put option premiums are likely to be higher.
19. Additional Surveillance margin will keep big players out from taking aggressive positions.
20. So big players can not even invest one third of their money in Put options.
21. Nifty future is likely to trade between 10780 and 10860.