Pre Market Report, October 17, 2018 | Stocks and Commodities

October 17, 2018
Time: 8.45 am

Pre Market Report:

1. US markets are highly volatile this year.
2. We met with good correction this year twice, once in February and now in September.
3. Yesterday US markets shot up.
4. SGX Nifty is trading around 10700, about 100 points higher.
5. This is a huge gap up that will scare the short sellers.
6. Last week expiry, if you remember, it was huge gap down.
7. This week expiry, it is a huge gap up.
8. By keeping last week huge gap down, Put premiums were so high yesterday.
9. Bank Nifty closed around 25600 but 25000PE which is about 600 point lower was trading around Rs 20.
10. Just few days before, every one was talking about Nifty breaking 10000.
11. There were many technical people who bought Puts without knowing Greeks have lost heavily.
12. Bank Nifty weekly expiry will add to the volatility.
13. Bank Nifty weekly expiry 26000CE has the highest open interest, if that is crossed, there will be more short covering.
14. Infosys ADR is up by more than 3% in US.
15. So be ready for a volatile expiry.
16. Yesterday once again FIIs have resumed selling in Cash market, they have sold for more than Rs 1000 crores.
17. Markets turn bearish after turning the last bear into bull and turn bullish after turning the last bull into bear.
18. Now Nifty from 10150 to 10700 in a matter of few days, fantastic recovery.
19. Around Diwali we can expect Nifty to scale to 11000.
20. We can expect Nifty future to trade between 10620 and 10750.