Pre Market Report, September 6, 2018 | Stocks and Commodities

September 6, 2018
Time: 8.50 am

Pre Market Report:

1. US markets ended mixed with Nasdaq down more than 1% due to sell off in Tech stocks.
2. Asian markets are mostly down.
3. Japan index is down significantly due to Earthquake.
4. But SGX Nifty is trading slightly positive.
5. Crude is slightly down.
6. Asian markets are trading closer to 52 week low.
7. Emerging markets fall is almost equivalent to Lehman Brother's collapse inn 2008.
8. But today emerging market currencies are higher.
9. We can expect some uptick in Rupee also.
10. Slight fall in Crude and slight appreciation in Rupee may make sure our markets do not fall much from here.
11. But Bank Nifty weekly expiry will add to the volatility.
12. Yesterday's market fall was much more than my expectation.
13. At least UI expected markets to take support at 11480 but went below that.
14. But finally it closed around 11520, the figure I mentioned as support yesterday morning.
15. Day before yesterday also same thing happened, I expected 11580 as the support but went below that but closed at 11580.
16. Cash market net selling was not significant by Institutions as FIIs have sold for about Rs 400 crores and DIIs have bought about Rs 200 crores.
17. But there was huge buying in Options by FIIs.
18. That opens the possibility of a big move.
19. Only time will tell, sometimes it may not happen.
20. Bank Nifty is likely to expire between 27200 and 27600.
21. Nifty should not break yesterday's low.
22. If breaks, better exit all long positions.
23. Resistance may come around 11580, the previous day closing.
24. Markets may make violent move in the last half an hour due to Bank Nifty weekly expiry.