Pre Market Report, March 1, 2018 | Stocks and Commodities

March, 1, 2018
Time: 8.45 am

Pre Market Report:

1. US markets fell in the last hour of the trade.
2. Dow fell 550 points intrday, Dow fell more than 250 points in the last one hour.
3. So Asian markets are all weak, except China.
4. Hong Kong also recovered much of the losses.
5. Jerome Powel, the new Fed chairman, made Hawkish statement on Tuesday and US markets fell.
6. Today once again he will speak at Senate. So people are jittery and sold in the last one hour.
7. We have our own problems like Banking Scams, Arrest of Ex-Finance Minister's son, etc.
8. Yesterday's markets move in the last one to one and half hour looks like expiry day trade.
9. As usual FIis have sold heavily in Cash market and DIIs almost matched them in buying.
10. FIIs were not bearish in F&O.
11. Nifty can swing 200 to 300 points without any substantial reasons, just by the Greed and Fear of retail and HNI people.
12. That is what now we are experiencing.
13. The sentiment has been very bad this time, February was one of the worst month for us.
14. We get mixed signals from the economic news, better GDP, better Core Sector growth, bad Fiscal Deficit, lower than expected Manufacturing PMI data.
15. Today Auto stocks will be in focus ahead of their monthly Auto sales data.
16. Yesterday was the first time, PSU Banks shot up from intraday low, some PSU stocks shot up by more than 10%, wiping out the capital of those who shorted at the lowest point.
17. So we can expect not much of shorting in PSU Banks today.
18. But ICICI Bank ADR is down by 3.5%, that is very bad for Banking stocks.
19. Bank Nifty is likely to break yesterday's low.
20. But in the last leg, Nifty rallied but fell immediately, wiping out entire gain, but Bank Nifty did not fall much after rising at around 2.45 pm yesterday.
21. One more disturbing factor is that today Nifty is likely to open lower than yesterday's low.
22. Tomorrow we have a local holiday whereas world markets are open, Jerome Powel testimony is due tonight.
23. So there may be some sharp move at the end of the day.
24. Traders will not like to carry positions through weekend.
25. As I said many times, Nifty will be moving violently between 10300 and 10700.
26. On Feb. 5, Nifty future closed at 10700, next day gap down open at 10300, from that day Nifty future has been trading between these two figures. (Just one day it went slightly below 10300)
27. Within this 400 points range, there is huge gap up and gap down. Markets violent movement is likely to continue until US markets settle down.
28. 500 points swing in Dow is extremely difficult for traders.
29. Markets will make two way movements.
30. The bast strategy is to create ratio spread in Nifty below 10000.