Pre Market Report, June 13, 2018 | Stocks and Commodities

June 13, 2018
Time: 8.20 am

Pre Market Report:

1. US markets ended mixed.
2. Asian markets are some in Green and some in Red.
3. Markets all over the world are trading mostly flat ahead of US Fed policy.
4. Though US Fed policy will be a non event, a 25 basis point hike is already factored in, people will be reluctant to carry large positions.
5. Yesterday Nifty once again made higher high and higher low.
6. Nifty closing was the highest in this series.
7. If you take away one day trading on May 15 when BJP was leading in the counting of Karnataka election, Nifty now trading at multi month high.
8. This is despite our huge under performance, Asia (ex Japan) is up by 3% this year while we are down by 5%.
9. Coming back to data, FIIs as usual, sold for more than Rs 1000 crore in cash market.
10. But FIIs seems to be bullish in F&O.
11. Nifty 10800PE added more than 9 lakh shares in open interest.
12. There was some unwinding in 11000CE.
13. All these points to bullishness in the market set up.
14. That is why I suggested ratio spreads using Puts in both Nifty and Bank Nifty.
15. IIP data and CPI data were slightly disappointing.
16. SGX Nifty is trading about 20 to 30 points lower.
17. Pharma and PSU Banks were leading yesterday.
18. Pharma index was up significantly for third day in a row.
19. Long time bears will have to close the positions.
20. Nifty future may trade between 10780 and 10880.