Pre Market Report, October 23, 2018 | Stocks and Commodities

October 22, 2018
Time: 8 am

Pre Market Report:

1. US markets ended mixed on Friday.
2. Asian markets all started lower today morning.
3. China regulator siad that everything under control and there is no systemic risk.
4. After this statement China markets opened positive, up by more than 2%.
5. On Friday it was up by more than 2.5% and with today's rise, it is more than 4.5% up in just two days.
6. Hong Kong is also up by about 350 points.
7. After this rise in China and Hong Kong, most Asian markets started recovering from big losses.
8. SGX Nifty hit a low of 10260 and then shot up bymore than 50 points.
9. On Friday night, all Indian ADRs closed positive in US.
10. ICICI Bank ADR was up by more than 2%.
11. On Saturday HDFC Bank came out with decent set of numbers.
12. We have to see how HDFC Bak shares will perform today and that will decide the direction of Bank Nifty and Nifty.
13. FIIs continue their selling spree.
14. One FII alone sold India Bull Housing Finance for Rs 175 Crores.
15. That counter fell 30% in two days.
16. This week is a very important week for both India and US as many corporate results are due.
17. About one third of Nifty 50 companies will declare results this week.
18. Only one this is very sure now, is the volatility.
19. Expect huge volatility this week in both Nifty and Bank Nifty.
20. Crude is below $80.
21. Reliance has fallen 5% after the results and it is not likely to fall further.
22. So we can expect, at least some consolidation in the markets.
23. From 10700 to 10250, it took only 2 trading sessions.
24. The fall was fast and furious.
25. SO we can expect some consolidation of some recovery.
26. But the Global cues are not supportive.
27. I am planning to buy Nifty 10300PE and sell 4X9500PE in November series.
28. This will give some profit if markets continue to fall.
29. Consolidation is good towards the end of the expiry.
30. Nifty future may trade between 10240 and 10420.