Pre Market Report, September 5, 2018 | Stocks and Commodities

September 5, 2018
Time: 8.45 am

Pre Market Report:

1. US markets closed mildly in negative after a volatile session.
2. Asian markets though opened lower, recovered later yesterday and mostly closed in Green yesterday.
3. But today following US, most of the Asian markets are down.
4. Surprisingly FIIs were net buyers in Cash market yesterday.
5. Even in F&O, they were not big sellers for the last two days for such a big fall.
6. So markets fell due to the over bought conditions in the market by retail people.
7. Now SGX Nifty is trading closer to yesterday's low.
8. The probability of yesterday's low breaking is very high.
9. Nifty future may find support around 11520.
10. In case if yesterday's low is not broken, then there is a possibility of a short covering later in the second half of the day.
11. Markets have fallen by its own weight, there is no external factor.
12. Though SEBI Circular related to FII was quoted as the reason, I do not think that is the real reason.
13. If that is the real reason, then FIIs should be selling in the market but they are not selling.
14. So markets may stabilise if it falls further, may be between 11200 and 11400.
15. Gradual depreciation of rupee is actually good but it has fallen suddenly due to its out performance for a long time.
16. Banking stocks under performing Nifty.
17. Mid caps are doing very badly.
18. Bank Nifty is likely to be highly volatile due to expiry tomorrow.
19. I have sold Call options in Bank Nifty aggressively and also covered Puts.
20. Nifty future may trade between 11520 and 11620.