Pre Market Report, May 11, 2018 | Stocks and Commodities

May 11, 2018
Time: 8.35 am

Pre Market Report:

1. US markets closed higher after benign inflation data.
2. Asian markets are all higher.
3. SGX Nifty has crossed 10800 yesterday night.
4. Now SGX Nifty is trading around 10780.
5. That is a very important resistance zone.
6. Remember for the last two weeks, Nifty has been consolidating between 10600 and 10800.
7. Any break out, technical people will go long.
8. But a run away rally is ruled out due to IIP, Inflation data today evening and Karnataka Exit poll results tomorrow evening.
9. Monday there will be gap up or gap down.
10. So it will be interesting to see the last one hour of trade.
11. I think there will be some short covering as midcaps have fallen so much in the last two weeks.
12. Once 10800 is crossed, 11000 will be a reasonable target if there is no negative reaction to Karnataka results.
13. Global cues and Monsoon forecast will be more important.
14. We also have to see the corporate results of the remaining companies.
15. Bank Nifty is looking very bullish.
16. Any intraday fall, go long in Bank Nifty.
17. Option premiums are too high as India VIX keep moving higher.
18. After Karnataka election results, India VIX will crash, option premiums will also fall drastically.
19. But it better to keep the positions light ahead of election results.
20. Nifty future may trade between 10720 and 10820.