Pre Market Report, Feb 15, 2021 | Stocks and Commodities

 Feb 15, 2021
Time: 7.30 am

Pre Market Report:

1. Asian markets are higher.
2. Japan GDP came higher than expected.
3. European and US Futures are higher.
4. What is more significant, US VIX was down and below 20.
5. That is a good sign for bulls.
6. Even in India, India VIX fell 8% in two days.
7. Option premiums are falling.
8. SGX Nifty is trading about 60, 70 points higher.
9. More importantly, it is trading near the upper end of the short term trading range of 15000-15250.
10. But not everything is looking good.
11. First, both FIIs and DIIs were net sellers on Friday.
12. How much markets can rise, when both are selling?
13. Second, huge Call writing was seen in Nifty at 15200CE and higher.
14. These people may take some hedged positions if Nifty crosses 15250.
15. Banks, Reliance looking bullish.
16. Autos are under performing.
17. FMCG, Auto, IT will have to pick up for meaningful rise in Nifty.
18. But anyway, since October series, first two weeks of gains for Nifty has been fantastic.
19. With most of the results are already out, markets may digest the results and may make a significant move on either side.
20. On Friday, there was an intraday sell off.
21. In fact, Nifty met with such a big intraday sell off 3 time in last 6 trading sessions.
22. We vcan expect that kind of sell off only in a bull market, due to profit booking.
23. So we are clearly ina  bull market.
24. So on every fall, either you can go log or sell Put options, to play the market safe.
25. It is easier said than done, when markets fall, you do not know where it will reverse.
26. That is why smart people sell only Put options.
27. Also they make windfall profit if VIX continue to move lower.
28. I fell that first gap up today may be sold into, as both FIIs and DIIs were on sell side.
29. If markets recover after the sell off, then I will turn very bullish.
30. Nifty future may trade between 15080 and 15320.