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

January 17, 2018
Time: 8 am

Pre Market Report:

1. Yesterday our markets consolidated after a huge run the day before.
2. Nifty 10900CE, 11000CE, 11100CE all saw nwinding.
3. Nifty 11200CE saw some addition in OI.
4. So if the uptrend continues, then the next target is 11200.
5. That depends on 3 corporate results during the next few days, Reliance on today, HDFC Bank on Saturday, Kotak Bank on Monday.
6. Now SGX Nifty is trading near yesterday's high.
7. US markets were also higher.
8. Bank of America and Goldman came out with good results.
9. But the news that 'Huawei is the target of US criminal probe for trade secrets theft' and Nasdaq fell.
10. Asian markets gave up some morning gains.
11. In this series, India under performed the world markets and Bank Nifty under performed Nifty.
12. Both index heavy weights HDFC Bank and Kotak Bank are doing very badly.
13. May be Bank Nifty is being managed due to weekly options expiry.
14. Max pain is at 27500, so the range for Bank Nifty spot will be 27400 and 27600.
15. It will be a good idea to go long above 27600 and go short below 27400, all prices are spot prices, not future prices.
16. There may be some sharp up move at 3 pm in Bank Nifty.
17. Markets are stabilising, in the first few days of January series, Nifty ATR was 120.
18. Yesterday it was just 60.
19. Bank Nifty too moving less volatile.
20. These are the signs that markets have botommed out and will move higher steadily.
21. If my gess is right, we will move slowly towards all time high in the next 2 to 3 months.
22. Then the volatility will emerge closer to election.
23. Reliance will be in focus ahead of results. I bought 1140CE and sold 2X1180CE and 2X1200CE.
24. Bank Nifty is likely to be volatile.
25. Nifty future may trade between 10900 and 11020.