Pre Market Report, August 16, 2019 | Stocks and Commodities

August 16, 2019
Time: 8.10 am

Pre Market Report:

1. On Wednesday SGX Nifty was trading around 10920 just before our market open.
2. Buy in Pre Market itself, Nifty was very strong.
3. Nifty future opened at 10999, Open and High was same for first hour.
4. Once that high was broken, Nifty future hit 11099.
5. That was about 180 points higher than what SGX Nifty indicated.
6. Then towards the end, again Nifty future fell to 11020.
7. Last one hour was very volatile due to expiry.
8. On Wednesday night DOW fell 800 points, worst fall of the year.
9. That is due to yield curve inversion, seen as precursor for Economic Recession.
10. After that biggest fall, Trump tweeted positive about China Trade war.
11. Markets recovered slightly after this positive tweet.
12. But yesterday evening, China said Trump's 10% tariff hike is against the agreement.
13. HK unrest or US-China Trade War, Yield Curve Inversion, Indian Govt inaction towards Economic Slow down, nothing seems to be subsiding now.
14.  To add fuel to fire, Economic data that came form China and Germany are not good.
15. Yesterday HK markets shot up more than 2% from intraday low when Fiscal Stimulus news broke out.
16. Yesterday PM reportedly met FM to asses the Economic situation.
17. But people still believe that Govt is trying to stabilise the markets with soothing words instead of any concrete action.
18. N Sitaraman has become most in famous FM.
19. Auto sales at 20 year low, she announces registration fee hike.
20. CCD promoter commits suicide, she announces Jail term for not spending CSR.
21. Stock markets are down, she announces Share buyback tax, 35% minimum share holding.
22. FPI sentiment has been very bad, she announces Super Rich Surcharge.
23. OMCs were asked to ta take Rs 1 per litre burden when Crude hit $80, now Crude is down below $60 but she increase the excise duty to keep herself. OMC prices have never crossed the figure prior to Rs 1 burden.
24. Lakhs and lakhs of people losing jobs in Auto sector, Tata Motors had to stop production for 3 times in August alone, hundreds of Dealers closing the shops, but still no action.
25. GST Council has not been informed of any agenda. A news paper report says PM is considering reducing GST for autos. Reducing the GST is done by GST council, not PM.
26. SGX Nifty now trading around 10940 which is about 90 points gap down.
27. This is happening at a time when all news papers report that Pm and FM are working towards Economic Revival package.
28. That shows clearly markets are not approving what Govt does.
29. Once again DIIs will try hard to keep the markets.
30. Market feels that this Govt is running through news papers.
31. Few days before one news paper reported that DTC (Direct Tax Code) is taken immediately, then there was no news about it.
32. Congress did bad to Kashmir and did good for rest of the country, now BJP has done good for Kashmir and bad for rest of the country.
33. Unless some official announcement comes, markets are not going to believe anything.
34. In the past also Economic Times reported that Govt considering relief for FPI surcharge but that did not happen.
35. All these will make markets very volatile. Will global cues drag down our market or PM review of Economic situation will trigger relief rally?
36. Difficult to predict as of now.
37. But Asian markets are recovering from lows.
38. Even Dow futures are trading higher than yesterday's high.
39. Let us see how our market performs today.
40. Let me refrain from predicting Nifty range today.
41. But one thing I am sure, there will be 500 point up move or down move in the next few weeks.