Pre Market Report, May 15, 2018 | Stocks and Commodities

May 15, 2018
Time: 8.40 am

Pre Market Report:

1. US markets were up slightly.
2. Asian markets are mixed.
3. But today Karnataka election results will be the key event.
4. Markets will be moving in the first half based on the vote counting progress.
5. As of now leading positions reflect the Exit polls.
6. BJP and Congress both getting almost same number of seats and not heading to majority.
7. Markets mat stabilise in the afternoon.
8. Yesterday, after a long time, FIIs were net buyers in Cash market, that too for more than Rs 500 crores.
9. Yesterday was a rare day when FII in Cash market, Index Futures, Stock Futures, DIIs in Cash market, all buyers.
10. Despite that markets closed flat.
11. Expect a highly volatile but within a small range of 100 to 150 points (yes, 100 to 150 points is small range for election results day) in the first half.
12. Global cues dictate the trend in the second half.
13. But Global cues are slightly negative.
14. There might be huge shorts by the people who have been expecting a fall for two reasons, (i) Hung Assembly (ii) Markets have gone up from below 10000 to above 10800.
15. By looking into Institutional figures, I will not be surprised if there is short covering rally in the second half.
16. Nifty may trade in a wide range of 10680 and 10880.
17. Markets may go up or not, surely India VIX will fall.
18. I expect at least 10% crash in VIX by the end of the day.
19. I will be a buyer if markets fall below 10700.
20. However I will not go short if markets go up.