Pre Market Report, May 23, 2018 | Stocks and Commodities

May 23, 2018
Time: 8.30 am

Pre Market Report:

1. US markets fell as Trump doubted the North Korea meeting.
2. Trump was also not optimistic about China trade agreements.
3. But Asian markets did not follow US markets.
4. Asian markets are mixed.
5. SGX Nifty is down by 20, 25 points.
6. FIIs have once again sold aggressively in Cash market.
7. FIIs have sold in Index Futures as well as Stock futures.
8. Despite that markets did not fall yesterday.
9. There were some buying visible in PSU Banks, Pharma stocks because of SBI results and DRReddy results.
10. Midcaps also stabilised.
11. So markets may consolidate for few more days.
12. Nifty 10500PE has the higest open interest among Puts and still OI is more than 50 lakhs.
13. But there was some unwinding of about 2 lakh shares.
14. So 10500 will act as a strong support.
15. As long as Nifty future does not break 10500, we can hope for consolidation and then resuming the rally.
16. If 10500 is broken, then the range for Nifty will move to 10300 - 10500.
17. Auto stocks also stabilised yesterday. Maruti and Tata Motors shot up 4 to 5% from the respective lows in the last two days.
18. Highest open interest among Calls is shifted from 11000CE to 10800CE.
19. Markets may struggle between 10500 and 10600 for few more days.
20. Nifty future may trade between 10500 and 10600 today.