Pre Market Report, January 17, 2020 | Stocks and Commodities

January 17, 2020
Time: 8.20 am

Pre Market Report:

1. US markets once again closed at record high.
2. Global markets are firmly in bull grip.
3. But here large caps are not doing well.
4. Mid caps and small caps however doing very well.
5. Yesterday Reliance and Kotak Bank saved the day.
6. As I said earlier, markets are likely to consolidate ahead of key results from HCL Tech, TCS, Reliance, HDFC Bank.
7. Yesterday markets were highly volatile.
8. Nifty moved plus and minus 40 points from previous day's close.
9. But Option prices spiked on both sides.
10. It was a tough day for option writers.
11. We need to see how this Supreme Court news going to affect the markets, particularly Banks and Telecom stocks.
12. Supreme Court dismissed telcos plea seeking relief from AGR dues of Rs 1.47 lakh crore.
13. Due to this news, SGX Nifty has been weak despite strong Global cues.
14. Nifty is at all time high but Bank Nifty is almost 1000 point from all time high.
15. Some good results from HDFC Bank, Axis Bank can change that next week.
16. Nifty may test 12500 next week if Reliance and some other results are good.
17. FIIs are alternatively buying and selling in Cash market.
18. DIIs keep selling.
19. Probably they may be buying and selling in mid caps and small caps.
20. SGX Nifty is slightly negative.
21. If markets are weak in the first part, there may be some sharp up move in last one hour.
22. Traders will like to book profits on their long or short positions ahead of week end as this week end is a very important week end due to key results.
23. Reliance, HDFC Bank, TCS and HCL Tech will be in focus today.
24. Yesterday's low should be a good support for Bank Nifty future.
25. Option premiums are high in the weekly bank nifty options due to key results from HDFC Bank, Kotak Bank and Axis Bank.
26. I sold Bank Nifty 32500CE expiring on Jan 23 at Rs 70.
27. We are entering into fourth week of 5 week series.
28. We have only 10 more trading sessions.
29. So premiums are likely to go down due to time decay.
30. Due to budget, option premiums are high in February.
31. Nifty future may trade between 12300 and 12420.