Pre Market Report, September 26, 2017 | Stocks and Commodities

September 26, 2017
Time: 8.30 am

Pre Market Report:

1. US markets closed lower dragged by Technology stocks.
2. North Korea threatening of shooting down US war planes was also one reason.
3. Until now there has been no more negative news from North Korea.
4. So Asian markets are not reacting the same way, Asian markets are mixed.
5. Hong Kong opened about 200 points lower and now recovered and trading about 25 points higher.
6. China is also trading in Green.
7. SGX Nifty hit a low of 9815 yesterday night. That was the kind of panic in Indian markets.
8. Now SGX Nifty is trading about 10 to 15 points lower.
9. But that was trading in the same way for the last two days but we know what happened the moment markets opened here.
10. Last two days my prediction of market levels went wrong terribly.
11. For 5 consecutive sessions FIIs were net sellers of more than Rs 1000 crores in Cash market.
12. THis has not happened since 2009.
13. Last time, FIIs were net sellers of more than Rs 1000 crores for 3 consecutive days in January 2011, that time Nifty fell from 6100 to 5200 in the next few weeks.
14. But that time the sell off was global induced and DIIs were not aggressive.
15. But this time it is India specific problem that too not a big problem. Moreover DIIs are flush with money. DIIs are buying more than what FIIs are selling.
16. So I am still bullish as long as 9700 is not broken.
17. If 9700 is broken then double top at 10150 will be confirmed.
18. Prolonged sell off by FIIs for nearly two months and selling of nearly 20000 crores, in case if market reverses, then the rally will also be significant.
19. One of my friends who is an expert says Nifty is likely to expire around 10000. He has bought Nifty 9900 Call aggressively.
20. Whether Nifty is going to expire near 9700 or near 10000 will be decided today.
21. Yesterday last 30 minutes, the recovery was with huge volume.
22. So markets may stabilise, it may not fall the way it did in the last two days.
23. Bank Nifty fell more than 200 points yesterday, yet Bank Nifty 24000PE did not rise.
24. That shows the confidence of Option writers.
25. Bank Nifty October expiry 22500PE was trading around Rs 50.
26. I sold huge quantities, hoping that VIX will fall in the next few days.
27. In fact even in this month series, I sold 22500PE at Rs 35 few weeks before, still holding that position.
28. So today's trade is very important to decide the trend whether it is going to continue to fall or going to stabilise and recover from here.
29. Even yesterday there were meaningful intraday recovery in some stocks, Axis Bank from 488 to 502, SBI from 254 to 261, Tata Steel from 624 to 644, etc.
30. Hope Nifty future takes support at yesterday's low of 9840.
31. Yesterday morning there was huge premium in both Nifty and Bank Nifty but towards the end that premium has come down.
32. Normally this is a sign of stabilisation.
33. Let us see what happens today.