Pre Market Report, May 17, 2018 | Stocks and Commodities

May 17, 2018
Time: 8.45 am

Pre Market Report:

1. Yesterday I could not write the report as there was some problem with my computer.
2. US markets closed higher.
3. But Asian markets are mostly flat with negative bias.
4. SGX Nifty is also almost flat with negative bias. 
5. As expected BJP has been invited to form the Government in Karnataka.
6. COngress has approached Supreme Court as expected.
7. So the uncertainty will continue in Karnataka.
8. But markets have already discounted that.
9. Midcaps and Small caps have fallen so much, even Porinju has to write a letter to his clients regarding the poor performance of his PMS.
10. Only handful of stocks are keeping indices higher.
11. HDFC Bank raising fresh funds is the major reason why HDFC Bank is up by more than Rs 100 in the last one month.
12. And that alone is responsible for about 1000 point rally in Bank Nifty.
13. TCS and Infosys are up by more than 20% in the last few months.
14. So TCS, Infosys, HDFC Bank, HDFC are all the index heavyweights which are holding the Nifty.
15. I bought LIC Housing Finance after it has fallen from Rs 800 to Rs 550, now it is below Rs 500 in less than a month.
16. I bought Tata Motors at 52 week low, still fell another 5%.
17. So it is time to go long in Large Cap and Short the midcap.
18. Nifty has been trading between 10600 and 10800 except for two days due to Karnataka election.
19. Seems that the same will continue.
20. I will turn bearish if Nifty falls below 10700 for short term.
21. We can expect Nifty to take support at yesterday's low, around 10720. Resistance will be at 10820.
22. Bank Nifty weekly expiry will add to the volatility.