Pre Market Report, February 26, 106 | Stocks and Commodities

February 26, 106
Time: 8.15 am

Pre Market Report:

1. I could not write "Post Market Report" yesterday due to some personal work.
2. I did mention that usually a turbulent series will expire at advantage to beras.
3. Look at yesterday's trade in the last one hour.
4. How many stocks were going all over the places.
5. Cromton Greaves fell more than 10%.
6. Reliance Infra shot up to 422 from 405 and then crashed to 408 all in one hour.
7. It was a complete mayhem.
8. Auro Pharma despite being included in Nifty crashed and hit fresh 52 week low.
9. So many other stocks also hit fresh 52 week low including ICICI Bank and HDFC Bank.
10. Our markets fell 11% in February series in dollar terms. Dollar term fall is more important as the fall is due to FIIs exit.
11. In Rupee terms our markets fell 7.6%.
12. Since January 1, Nifty fell 12.5% in Rupee terms.
13. Our market is the worst performing market in February.
14. No sector is spared, all the strongest sectors in the few years like Private sector banks, Pharma and Auto Ancillaries are come under severe selling pressure.
15. Surprisingly Metal sector is doing well.
16. Look at Jsw Steel which shot up from 950 on Feb. 11 to 1140 yesterday, a whopping return of more than 20% in this market mayhem.
17. Usually first trading day after such a bad expiry, markets recover to some extent as per past statistics.
18. But ahead of Budget we do not know whether this recovery will be sold into.
19. Is everything is lost?
20. There are still some hopes.
21. Metals and Pharma did well yesterday.
22. There was a news that RBI is relaxing Strategic Debt Restructuring with some conditions, I do not know how this will affect the banking stocks today.
23. It is the action by RBI that brought the Bank Index from 21000 in March last year to 13500 this year, a fall of about 40% in one year.
24. Last three days of fall was a terrible one for option writers.
25. Nifty 7000 Put settled at Rs 30 in three days from Rs 2.
26. As usual SGX Nifty is trading higher as US markets and Asian markets are higher.
27. We do not know how much more India Specific selling is left.
28. There are some positive news report related to stock market like Removal of STT and Removal of Stamp Duty for F&O trades in lieu of Long Term Capital Gains Tax.
29. We can be clear about the bottom of the market only on Monday after the budget.
30. At least there are no negative news flow today.