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

October 16, 2018
Time: 8.40 am

Pre Market Report:

1. US markets fell but not as much as expected.
2. Asian markets are mostly in Green.
3. SGX Nifty is trading slightly positive.
4. Trade deficit data was a favorable data.
5. Probably some people knew about this yesterday and that could be one reason for our strong performance.
6. After many weeks, FIIs were net buyers in Cash market.
7. Though the net buying was less than 100 crores, we should be happy that they did not sell.
8. DIIs did not buy much.
9. However FIIs are adding shorts in F&O.
10. But that will help the markets for short covering rally.
11. Anyway shorted quantities will have to be bought back, unlike Cash market.
12. IndusInd Bank results were not bad but stock fell slightly.
13. I went long at 1610 and sold 1600CE and 1700CE.
14. India Bull Housing Finance came out with results after the market hours.
15. The results were good, we can expect some positivity in the stock.
16. Yesterday I went long at 940 and sold 940CE and 1100CE.
17. For another client I did 940 Short Straddle, i.e. sold 940CE and 940PE.
18. Straddle will make money as long as the stock is not moving more than 10% on either side.
19. Today Hero Moto and Infosys results are due.
20. But Infosys results are after the market hours.
21. I am planning to sell 800CE today if there is any intraday up move.
22. If you are a dare devil try the following strategy: Short Nifty future in November, Sell 10500, 10000, 9900, 9800, 9700, 9600, 9500PEs.
23. You should know how to manage if markets go lower or higher.
24. Kotak Bank and HDFC Bank are looking strong.
25. So there is no reason for Bank Nifty to under perform.
26. I have sold 24500PE weekly expiry.
27. Watch out for NBFCs as the yield on bonds go down.
28. Reliance will be another stock to watch.
29. One can consider ratio spread in Reliance as the results are expected to be good.
30. Yesterday I suggested Put ratio spread along with a call for my friend in India Bull Housing Finance.
31. He sold 840, 820, 800PE bought 860PE and sold 1100CE.
32. Nifty future may trade between 10450 and 10600.