Pre Market Report, March 5, 2018 | Stocks and Commodities

March 5, 2018
Time: 8.50 am

Pre Market Report:

1. After our markets closed on Thursday, Trump tweeted about Steel Tariff hike.
2. World markets fell.
3. SGX Nifty hit a low of 10260 on Friday night.
4. This trade war is a serious issue.
5. Already many sectors in US have gone into correction territory, meaning fell more than 10% from the recent peak.
6. So it is time to be cautious and cut all the long positions.
7. The impact may not be very big temporarily in India due to BJP win in North East.
8. But these things will be forgotten in the next few days.
9. Trump's Trade War, Italy Election results are the two key risks now.
10. Only long term investors can stay, traders should exit long positions on any intraday bounce.
11. If Nifty future breaks 10300 then there will be panic selling as many people SL is there.
12. That can drag Nifty to 10000-10200 range.
13. Then we will go with the Global trend.
14. At the same time, markets may reverse on any good news as shorts are there in the system.
15. Short covering rally may come if there is any good news.
16. But as of now, there seems to be no good news as markets are not reacting to BJP's win in North East.
17. If there is any intraday bounce, then sell 10600CE and use that money recived to buy 10000PE.
18. That seems to be a good idea at this point.
19. Nifty future should take support at 10300 resistance at 10420.