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

November 11, 2017
Time: 8.35 am

Pre Market Report:

1. One year before, on November 7th night Demonetisation was announced.
2. Yesterday some people might have feared and booked some profit.
3. What started as a normal proft booking, US dollar strength has aggrevated the fall.
4. Except IT index, all other indices fell marginally.
5. Then came Lupin USFADA observation news and Lupin fell 20%.
6. As the day before yesterday low was broken, fall aggrevated further.
7. Collateral damage was felt in all Pharma stocks.
8. Cipla fell 7% despite better results.
9. A big bull reportedly pledged lot of shares of Lupin to create positions in F&O.
10. Yesterday margin call came to this bull and that was the reason for panic selling in other heavyweights.
11. HDFC Bank also came under profit booking as the HDFC Life IPO did not get good response on Day 1.
12. But this correction is a healthy one.
13. Otherwise nobody will enter the market, prices have to fall so that some people will start buying.
14. FIIs were net buyers in Cash market but created huge short positions in F&O.
15. This kind of short creation will help the markets to rally in the next leg.
16. Now Nifty future found resistance twice above 10500, Nifty future may trade between 10200 and 10530 for the next few days.
17. Global cues are almost flat.
18. SGX Nifty is also trading flat.
19. As long as Nifty future does not fall below 10370, we can expect some minor rally at the end of the day.
20. Yesterday Nifty future closed at 60 points premium.
21. That shows the confidence of Future players.
22. Even Bank Nifty future was trading at 100 point premium.
23. Over bullishness has gone now, stock specific action may start now.
24. In the morning Nifty may come under pressure due to Bharti Airtel share sale.
25. Rs 9500 crores worth of Bharti Airtel shares will be sold at 4 to 8% discount to yesterday's closing price.
26. Since it is an index heavyweight, a fall of 5% will affect the Nifty.
27. Nifty future should take support at 10370, failing which next support will be at 10320.
28. But I do not expect Nifty future to go below 10370.
29. Resistance will be around 10460.