Pre Market Report, March 20, 105 | Stocks and Commodities

March 20, 105
Time: 8.30 am

Pre Market Report:

1. I could not write "Pre Market Report" yesterday as there was some problem with internet connection and that was solved only at 9 am.
2. Any way there was nothing to write as every one knows that markets all over the world would be trading based on Fed outcome.
3. But surprisingly our markets fell so dramatically that everyone was puzzled.
4. This is despite huge buying of Rs 1428 crores by FIIs in cash market. 
5. Every one is trying to find reason.
6. Some of the reasons: 1. Profit booking, 2. US will hike rates in June, 3. Govt. considering farm loan waiver due to unseasonal rain. 4. New Index propsed by NSE (Quality 30) to replace has very little waitage for Banks. (Quality 30 is likely to be replaced by Nifty 50. In Top 10 companies, there is no bank. Top ten companies are 1. Infosys. 2. TCS. 3. HCL Tech. 4. Tech Mahindra. 5. Maruti. 6. Tata Motors. 7. ITC. 8. HUL. 9. Sun Pharma. 10. Coal India), 5. Q4 Corporate results are likely to be bad. etc.
7. Today markets may consolidate after yesterday's fall.
8. One week before also Bank Nifty fell 700 points intraday, high of 19500 and low of 18800.
9. The same thig has happened yesterday.
10. The panic was so high, both Nifty future and Bank Nifty future traded at discount to the cash Nifty and Bank Nifty.
11. Nifty is likely to expire between 8600 and 8800 and Bank Nifty is likely to expire between 18500 and 19500.
12. This observation is based on the open interest positions of options.
13. Today, there will be panic if Nifty falls below 8580. In that case February low of 8506 in Nifty will be tested.
14. There will be absolute panic if Nifty falls below 8500 as the next support is at 8200 and 200 DMA is at around 8150.
15. Bank Nifty's low of 18300 should not be tested in order to be bullish in Banking stocks.
16. IT and Pharma are likely to do well and that may support the market.