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

April 5, 2018
Time: 8.40 am

Pre Market Report:

1. What a volatile day for world markets?
2. China announced the tariff hike for US products.
3. Markets all over the world crashed.
4. Nifty fell 160 points from intraday high.
5. Dow future was down by 650 points at one point of time.
6. But US markets opened for trading and recovered slowly and Dow closed about 250 points higher.
7. Now Dow future is trading more than 100 points, taking the total swing to more than 1000 points in less than 24 hours.
8. Main reason for the recovery was a tweet by Trump that says US is not in trade war with China.
9. But I do not know how financial markets believe him. He speaks differently within a day.
10. Last week, morning he refused to sign a bill but in the evening he signed.
11. This huge gap up today will trap all short sellers.
12. If I am not wrong this is the highest gap up after 2014 election results.
13. At least on that day people knew the possibility of gap up.
14. Today nobody expected, so this huge gap up is going to be more painful than 2014 gap up.
15. No significant selling by Institutions, No significant shorts created, markets fell just due to the absence of buyers yesterday.
16. There was no unwinding in Puts, in fact there was good addition right from 10100PE to 9500PE.
17. So be ready for roller coaster ride today.
18. RBI policy in the afternoon and Weekly expiry of Bank Nifty will add to the volatility.
19. Morning first half an hour there will be panic. Then by 11 am also there will be some panic as brokers will start squaring off clients positions if funds do not hit them by 11 am.
20. Any dip now is a buying opportunity for short term.
21. All the excesses have been removed from top counters like Kotak Bank, HDFC Bank, IndusInd Bank, etc.
22. Auto sector likely to see more gains.
23. Nifty future may trade between 10220 and 10320.