Pre Market Report, January 19, 2018 | Stocks and Commodities

January 19, 2018
Time: 8.15 am

Pre Market Report:

1. US markets closed lower as Oil related stocks fell.
2. Crude oil fell below US$69 due to inventory data in US.
3. But Asian markets are trading with positive bias.
4. SGX Nifty is also trading slightly higher.
5. Bank Nifty was on roller coaster ride for the last two days.
6. Day before yesterday Bank Nifty low was about 25900.
7. Yesterday Bank Nifty high was about 26900.
8. This is a swing of about 1000 points, after rising 1000 points, it fell about 400 points intraday.
9. SBI fell more than 6% intraday yesterday.
10. PSU Bank index is up 3% one day and down by 3% the next day, highly volatile.
11. Highly volatile nature indicate that either these stocks are in the process of bottoming out or topping out.
12. In my opinion, they are in the process of bottoming out.
13. Today is very important day for corporate results.
14. HCL tech, HDFC Bank, Kotak Bank, ITC, Reliance, Wipro are all set to declare results today.
15. These stocks constitute about 30% of Nifty weightage.
16. Out of these stocks, Reliance and Wipro will declare results after the market hours, HCL Tech will declare results before the market hours, remaining will declare results during the market hours.
17. FIIs have bought heavily in both Cash and F&O.
18. HDFC bank, Kotak Bank and HDFC were the stocks that supported the Nifty yesterday.
19. Midcap stocks started correcting, many top traded midcap stocks fell by 5% to 10% yesterday.
20. Markets may consolidate and move higher eventually if corporate results are good.
21. Yesterday Nifty found resistance at 10880.
22. If that is crossed, Nifty will touch 11000 in no time.
23. But that may not happen today, may happen next week.
24. Markets may be choppy due to the corporate results.
25. Option premiums will fall after the results as IV will fall.
26. Next few days of trading will be exiting.
27. Auto stocks may have bottomed out. They may recover if Oil does not rise any further. 
28. Maruti tried to recover but late sell off dragged it down. Yet Maruti was up by Rs 60.
29. I have sold Maruti 9000PE and 10000CE.
30. Nifty future may trade between 10780 and 10880.