Pre Market Report, May 18, 2017 | Stocks and Commodities

May 18, 2017
Time: 8.45 am

Pre Market Report:

1. US markets fell drastically.
2. Yesterday I mentioned in my blog "Donald Trump asked then-FBI Director James Comey to end a probe into Trump's former national security advisor"
3. This news has played out in the US markets and Dow fell more than 300 points, a sharp fall in the last few months.
4. Asian markets are all reacting to this sharp fall in US.
5. SGX Nifty too has fallen by about 50 to 60 points.
6. SGX Nifty now trading around 9480.
7. But after initial fall, markets are likely to stabilise.
8. FIIs have sold for more than Rs 700 crores while DIIs have bought for Rs 615 crores.
9. In F&O also, there seems to be no shorting by FIIs.
10. So if market falls, then chances are less it will shoot up again by short covering.
11. So markets may fall and consolidate at the lower levels.
12. We can expect Nifty to trade between 9400 and 9600 for the rest of the series.
13. Today Bajaj Auto and Babk of Baroda are the two key companies set to declare results.
14. Bank of Baroda results may come after the market hours.
15. Sensing the lower open today as Dow futures were down more than 100 points at 3.15 pm yesterday, I closed all the Bank Nifty Put options (weekly expiry)
16. I sold 23200 Call for Rs 6 in huge quantities.
17. I am likely to make some profits in that Call.
18. HUL has come out with good results and that may support ITC and other FMCG stocks.
19. Since Trump is in trouble, that may be good for IT stocks.
20. If IT and FMCG do not fall much, then markets may stabilise at lower levels.
21. PSU Banks may not fall much ahead of Bank of Baroda and SBI results.
22. So I expect Private sector banks and Autos to lead the fall.
23. Nifty future should take support at 9450.
24. Nifty future may trade between 9450 and 9540.