Pre Market Report, May 21, 2018 | Stocks and Commodities

May 21, 2018
Time: 8.45 am

Pre Market Report:

1. US markets closed flat on Friday.
2. But during the weekend, US and China decided not to go for trade war.
3. That is a very good news and US Dow futures are up by more than 200 points.
4. Asian markets are all up.
5. BJP could not form the Government in Karnataka as expected.
6. But it seems that it is priced in already.
7. Nifty has fallen more than 300 points and Bank Nifty more than 1000 points in the last few days.
8. SGX Nifty is trading about 20 points higher.
9. We can expect some consolidation with positive bias.
10. At some point, there will be some short covering rally.
11. So Nifty may consolidate between 10500 and 10800 for the rest of the series.
12. Crude prices are slightly down after hitting US$80.
13. Crude, Rupee, US bond yield, FII selling in Cash market are the headwinds now.
14. Pain is more in midcap and small caps.
15. If market opens flat I will be a buyer in both BPCL and HPCL.
16. Both are trading closer to 52 week low.
17. I feel that Crude prices have topped out and will continue to drift lower in future.
18. Please do not follow me as I will be doing enough hedging.
19. Nifty future may take support at 10580.
20. Resistance will come around 10680.