Pre Market Report, September 27, 2018 | Stocks and Commodities

September 27, 2018
Time: 8.10 am

Pre Market Report:

1. We are coming to the last day of September series, most volatile series after February series.
2. Nifty has lost more than 600 points in this series.
3. Many things have changed during this series, Rupee depreciated drastically, Crude shot up.
4. NBFC rally came to halt abruptly and many NBFC stocks lost 30 to 50%.
5. Even the blue chip companies like Bajaj Finance, Bajaj Fin Serve fell 35, 30%.
6. IL&Fs issue was blown out of proportion and the situation reflected Lehman Bros collapse.
7. Yesterday Govt hiked import duty on certail items and that is positive for Rupee.
8. That could be the reason for under performance of IT stocks yesterday.
9. Even yesterday markets were higly volatile.
10. But Bank Nifty was relatvely stable.
11. Just one day Bank Nifty closed flat, that happened a day before expiry, all Put and Call options fell and premiums collapsed.
12. As usual FIIs have sold heavily and DIIs have bought even more heavily.
13. US Fed has increased rate by 25 basis point which is in line with expectation.
14. But Fed Chairman indicated that there will be no aggressive rate hike in future.
15. So Banking stocks fell and that brought down DOW.
16. De to positive comment by Fed Chair, Asian markets are mostly positive marginally.
17. SGX Nifty is trading around 11080 about 30 points higher.
18. We can expect another day of highly volatile trade, bear case scenario 10980-11020 and bull case scenario 11140-11180.
19. We can expect Expiry to happen in either of these two ranges.
20. If my guess goes correct, there will be short covering rally in the last half an hour in Bank Nifty.