Pre Market Report, June 8, 2018 | Stocks and Commodities

June 8, 2018
Time: 8.20 am

Pre Market Report:

1. US markets closed mixed.
2. Asian markets are mostly down.
3. SGX Nifty is trading below 10700.
4. That is a big gap down of about 60 points from yesterday's close.
5. It seems that yesterday's rally was a short covering rally.
6. Bank Nifty came under selling pressure the moment it touched 26800.
7. Kotak Bank, IndusInd Bank, HDFC Bank came under selling pressure.
8. There was unwinding in call options of 10800, 10900 and 11000.
9. Huge open interest of more than 10 lakh shares added in 10700PE.
10. Even 10800PE added huge open interest despite being in the money.
11. Option data suggest the bullishness.
12. Whether the bullishness will continue or not, only time will tell.
13. Focus now will be shifting to G-7 meeting, US-North Korea summit, US Fed policy, etc.
14. Our markets will also focus on Monsoon progress, IIP and Inflation data, Crude and Rupee movement, etc.
15. After good performance in the last two years, Nifty may not go anywhere this year.
16. Going up and coming down, range bound for many months.
17. I remember in the first week of February, Nifty was at 10700.
18. After four month, today it is around the same level.
19. In the mean period, many stocks have been going down, mainly midcap and small cap stocks.
20. Large caps are holding due to out performance of some index heavy weights like HDFC Bank, TCS, etc.
21. We need to see if there is any recovery in the second half.
22. Today's closing will be important.
23. I will turn bearish if Nifty closes below 10680.
24. Today Nifty future may trade between 10680 and 10780.
25. I plan to sell 10200PE if Nifty falls below 10680.