Pre Market Report, August 7, 2018 | Stocks and Commodities

August 7, 2018
Time: 8.50 am

Pre Market Report:

1. US markets are higher despite the trade war fear.
2. Facebook helped Nasdaq higher.
3. Asian markets are mostly flat.
4. But Hong Kong and China are up.
5. SGX Nifty is slightly higher.
6. Markets are consolidating at higher levels.
7. Corporate banks have shot up yesterday.
8. Though HDFC Bank, Kotak Bank fell, Bank Nifty was significantly higher.
9. I thought HDFC AMC listing will benefit HDFC Bank, later I was told only HDFC has the stake in HDFC AMC not HDFC Bank.
10. So HDFC Bank fell despite HDFC AMC listing at 60% premium.
11. Crude is slightly higher.
12. But markets are likely to breakout by the end of this expiry.
13. SBI has shot up from the recent low of 250 to 310.
14. ICICI Bank from 260 to 315.
15. Any intraday dip is a buying opportunity for trading, not investing.
16. Even midcaps are gathering momentum.
17. LIC Housing shot up from 465 to 560 in the last few weeks.
18. RECfrom 90 to 115, PFC from 70 to 85, etc.
19. Markets closed higher but VIX was also higher by 4%.
20. This shows the fear on the upside.
21. So the markets may breakout in few days time.
22. We need some trigger, that can be good results from SBI or a good news from US regarding trade war, inflation data, IIP data, etc.
23. On every dip, we can sell Nifty 11000PE.
24. In Bank Nifty, on every dip, we can sell 26500PE.
25. Yesterday Auto stocks also did well.
26. As long as Nifty future is not breaking 11380, I will stay bullish for short term.
27. My short term target is 11520.