Pre Market Report, October 24, 2018 | Stocks and Commodities

October 24, 2018
Time: 8.40 am

Pre Market Report:

1. Yesterday's trade was a real puzzle.
2. Markets kept on falling but Inda VIX also kept falling.
3. This is the first time, I am seeing, Nifty making the swing low and India VIX crashing more than 10%.
4. The fall in Crude could be one possible reason.
5. Last month Crude shot up to $80.
6. Trump said this price is crazy due to Iran sanctions and Saudi Arabia should boost the out put to bring down the prices.
7. But Saudi Arabia refused and Crude shot up above $86.
8. Then came the killing of Kashoggi by Saudi autrorities.
9. Now the whole world is turning against Saudi Arabia.
10. Many countries withdraw from the "Devos of Desert" event.
11. In order to please the world community, Saudi decided to boost the output.
12. All these are OIL politics and the entire world politics is based on Oil for the last many decades.
13. So Crude crashed more than 4.5%.
14. Indian Rupee also appreciated by 30 paise in Overseeas markets.
15. SGX Nifty is trading about 60 points higher.
16. Since this is happening closer to the expiry, Gamma effect will come into play.
17. Call option sellers will scramble to square up the positions leading to short covering in Nifty.
18. But Bank Nifty may wait for Kotak Bank results.
19. Auto and OMCs will be in focus.
20. I think there will be a good short covering in Maruti due to its results tomorrow.
21. Auto, Banks, OMCs will be good and IT and Pharama may not be good today.
22. HDFC Bank ADR is up by 3%.
23. Nifty is likely to rise 100 to 150 points and Bank Nifty 300 to 400 points and that is my guess.
24. We have to see how volatile is the market.
25. Nifty future may trade between 10180 and 10320.