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

January 16, 2018
Time: 8 am

Pre Market Report:

1. S markets closed in Green due to out performance of Tech stocks.
2. But Asian markets are mixed.
3. SGX Nifty is almost flat.
4. But SGX Nifty hit a high of 10960 yesterday night.
5. Yesterday's rally was least expected by people.
6. Reliance shot up 4% in two days.
7. Yes Bank shot up 10% in two days.
8. Momentum is being built up ahead of Reliance results tomorrow evening.
9. With the kind of IIP data and Inflation data, there is a talk of rate cut by RBI.
10. Despite that Banking stocks are under performing.
11. It is IT stocks, Reliance, ITC and HDFC Twins pulled the markets higher.
12. In the last few weeks, many times Nifty future fell from 10900 plus levels.
13. Let us see this time whether the same thing is going to happen or Niifty future is going to scale 11000.
14. There was huge addition of open interest at 10900, 10800 and 10700PE.
15. There was huge unwinding of 10800, 10900, 11000CE.
16. In Bank Nifty weekly expiry, Call premiums are higher than put premiums.
17. All these show that writers are very bullish this time.
18. One, 10900-11000 was huge resistance many times in the recent week, so if it is broken the rally will be fast and furious.
19. Two, India has under performed world markets by huge margin January, if that gets adjusted, Nifty can go to 11200-11300 levels.
20. Third, though first few results were not good like IndusINd, TCS, the results later started picking up with Infosys, ZEE, etc.
21. Fourth, China is planning stimulus measures and since both US and China Economies are weakening, sooner than later, an agreement is bound to happen.
22. Fifth, we are into the 5th month os high volatile moves, usually markets move higher after such a huge volatile period.
23. So from now until January end, it will be a good idea to follow "Buy on dips"
24. Bank Nifty strategy I did yesterday: -1X27500CE Jan 17, +1X27500CE Jan 24, -1X28000CE Jan 24.
25. Nifty future may trade between 10880 and 11000.