Pre Market Report, September 25, 2017 | Stocks and Commodities

September 25, 2017
Time: 8.25 am

Pre Market Report:

1. There were lot of War of Words between North Korea and US during the weekend.
2. On Saturday there was a 3.3 magnitude quake detected from North Korea but nobody knows the exact reason.
3. US has flown fighter jets very close to North Korea in a show of military strength.
4. Then there was German election uncertainity. But election results came as expected and Merkel has become Chancellor for fourth time.
5. Asian markets started with optimism in the morning but China and Hong Kong spoiled the party.
6. Hong Kong is down by more than 200 points and China, Taiwan are also down.
7. So it is a mixed Asian markets.
8. SGX Nifty too is totally confused, trading between 9775 and 10006.
9. Now it is trading around 9885.
10. I feel that Friday's fall is a over reaction to the newsflow.
11. That is why we see huge buying of more than 2000 crores in Index Futures by FIIs.
12. There are two possibilities, if markets contiue to go down, then it will be very bad.
13. At least so far FIIs have been maintaining short positions, if markets fall, these shorts will like to square off and that will cushion the fall.
14. But Friday it seems that FIIs have already squared off most of their short positions.
15. If there is any more panic, then when markets fall, it will be a free fall, as there is no short covering cushion.
16. On the other hand, if markets stabilise here and recover from here then it will be good.
17. Since there are only 4 more trading sessions for this expiry, option sellers will like a range bound trade.
18. SBI Life issue has done very badly, except Institutions, nobody seems to be interested.
19. That added bearishness to already bearish SBI and other PSU Banks.
20. The stocks that run up came for sharp selling mainly due to profit booking.
21. So as of now, I do not see any danger.
22. But Nifty has a double top around 10150 and hence that level will have to be taken out in the next few weeks for bull markets to resume.
23. Until then we need to keep our fingers crossed.
24. So today's market is very important to decide the trend in the short term.
25. Despite some Asian markets are showing significant negativity, US and European futures are trading in Green.
26. So our markets may show weakness in the first half and may recover towards the end of the day.
27. I expect Nifty future to take support at 9660, failing which I am planning to add some more short positions.
28. Nifty future may find resistance at 10020.
29. Nifty future is likely to take a strong support at 9900 until expiry.