Pre Market Report, August 11, 2017 | Stocks and Commodities

August 11, 2017
Time: 8.35 am

Pre Market Report:

1. US markets closed drastically lower.
2. Falling by 100 or 200 points is not a great thing, but VIX shot up 44% in just one day.
3. That shows the panic in the minds of investors as weekend is nearing, anything can happen during the weekend.
4. India has to face additional problem of Indo-China problem, in addition to US-North Korea issue.
5. Some people seems to convinced that market is going to crash.
6. Yesterday selling between 2.30 pm to 3.00 pm was extraordinary.
7. I couls not believe Bank Nifty spot touching 23822.
8. Now all technical and fundamental factors are pointing to weakness.
9. Super Trend has changed from 'bullish' to 'bearish' for the first time in the last one year.
10. We have to remember the fact that when this happened last time, Nifty was down by more than 1000 points and it took nearly 3 to 4 months to turn 'bullish'
11. What is more worrying is that when Nifty future actual closing here was at 9880, in the next 5 minutes it was trading at 9820 at SGX.
12. That was the conviction of FIIs as most of the people who trade in SGX are FIIs.
13. But again, everything is 'gloom or doom', No, here and there DIIs will place buy orders and markets will move sharply higher.
14. Anyway I am planning to close all my long positions and keep only short positions.
15. SGX Nifty is traing around 9760 and that is straightway 120 points lower than actual close here.
16. Even the blue chip companies have fallen by 20 to 25%.
17. DrReddy fell nearly 20% in four days and DrReddy is down more than 50% down from the peak.
18. That was the case with most of the Pharma stocks.
19. Even Auro Pharma fell and went below day before yesterday's low despite showing good results.
20. I am turning bearish after being bullish for the last one year.
21. Nifty future support may come at 9725.
22. No need to talk about resistance during free fall.
23. My advise is that exit all long positions, if possible during intraday recovery, surely there will be one.
24. If not possible to bear the loss, better exit at open.
25. Maintain only 'short' positions with proper hedging.