Pre Market Report, January 15, 2018 | Stocks and Commodities

January 15, 2018
Time: 8.40 am

Pre Market Report:

1. Yesterday SGX Nifty was hovering around 10820 before our market open.
2. Few days before the low was 10768.
3. Since we have been trading "Higher high, Higher Low", I said Nifty future will take support around 10780.
4. But yesterday within few minutes Nifty broke that low.
5. Nifty future took support at 10720.
6. Probably lower IIP data triggered some selling.
7. Yesterday US markets closed lower but recovered from day's low.
8. Asian markets also recovered and trading in Green.
9. SGX Nifty is trading around 10825.
10. Nifty is finding support it it breaks below 10700 and finding resistance if it moves higher than 10900.
11. Half the number of trading sessions are gone, Nifty has not gone anywhere.
12. So break out or break down is imminent in the next few days.
13. Most likely it will be a break out.
14. We need some local triggers like good corporate results from some index heavyweights.
15. We need some Global triggers also like US Govt shut down and US-China Trade agreement.
16. Last time Brexit triggered massive sell off in the world markets.
17. Today that is also there but not likely to make any impact.
18. Bajaj Finance, Titan, Auro Pharma are looking good.
19. Bank Nifty under performed hugely as Kotak Bank and HDFC Bank are doing very badly.
20. FIIs have sold heavily once again in CAsh market.
21. But they were not that bearish in F&O market.
22. Option chain OI indicators indicated Nifty level of 10500-11000 for this month and it has been trading that way.
23. Since 10500 was a strong support, I bought 10800PE and sold 2X10500PE with no credit and no debit.
24. Now sitting woth about Rs 40 profit. This is done to reduce the downside risk from 10800 to 10500 for my Cash market portfolio.
25. Otherwise I keep selling Call options of individual stocks of my Cash folio.
26. Now the simple trade looks like this: Long below 10800, short above 10900, no trade zone 10800-10900.
27. WIPRO issuing bonus shares, Infy share buy back, etc may revive interest in IT stocks.
28. I am planning some Call spreads in Titan, Auro Pharma, Reliance.
29. Bank stocks will be in focus after a low infltaion figure.
30. Nifty future may trade between 10780 and 10880.