Pre Market Report, May 22, 2018 | Stocks and Commodities

May 22, 2018
Time: 8.50 am

Pre Market Report:

1. US markets shot up as trade war fear receded.
2. But Asian markets are not following US markets.
3. Yesterday FIIs have sold in Cash, Index Future as well as Stock Futures.
4. They have been buying Options in huge quantities.
5. All technical levels seems to have broken.
6. Even Super trend on daily chart has shown negative yesterday.
7. If not for aggressive buying by DIIs, markets would have broken down.
8. PSU Banks were in Green due to Bhushan Steel news.
9. Today we have to see how SBI performs ahead of and after its results.
10. Bank Nifty has fallen by about 1200 points in the last few sessions.
11. Midcaps are melting.
12. Yesterday one third of midcap stocks fell more than 3%.
13. So mid and small caps are in capitulation mode.
14. This fall is India specific, so there is no point in looking for global cues.
15. As long as Nifty future holds 10500, we can expect some small short covering.
16. If 10500 is broken in Nifty future, 10480 is broken in Nifty, then there will be further slide.
17. The next support is between 10300 and 10400.
18. So it is time to be cautious in long positions.
19. SBI results is a key event to watch today.
20. Nifty future may trade between 10500 and 10580.