Pre Market Report, October 30, 2018 | Stocks and Commodities

October 30, 2018
Time: 8.00 am

Pre Market Report:

1. Yesterday was a gap up and as usual short sellers entered immediately to bring the markets down.
2. Then came the determined effort of DII who took the Nifty y over 250 points from intraday.
3. ICICI Bank results turned the story around.
4. RBI's OMO purchase of 400 billion rupee helped PSU Banks to shoot up.
5. PSU Bank index was up by 8%.
6. All the stocks which are yet to declare results shot up by short covering as short sellers lost heavily in ICICI Bank.
7. Then came power tariff news from Supreme Court and all power stocks shot up.
8. Then came Divis Lab. results, all Pharma stocks shot up by more than 5%.
9. It was all round short covering.
10. From the longer term perspective, we can say Nifty has made double bottom around 10,000.
11. US markets opened with a very positive note due to positive Global cues.
12. But Boeing fell as one of the Boeing plane crashed in Indonesia. In fact crash happened yesterday morning but that was not reflected in Asian or European markets.
13. Then came Trump news that US is considering another round of tariff hike against China if there is no agreemnet between Trump and Xi in the G20 meet on November 30.
14. Dow crashed 900 points from intraday high.
15. Then recovered some lost ground towards the end of the day.
16. Asian markets actually did not mirror this pessimism.
17. It is only when Hong Kong and China opened, Asia started givig up some of the gains.
18. SGX Nifty is very volatile, trading between 10220 and 10260 so far.
19. After a huge rally yesterday, markets are likely to consolidate.
20. Stock specific action will continue.
21. Tech M, Bank of Baroda, Tata Coffee, Pidilite are some of the companies set to declare results today.
22. Yesterday in a rising market, India VIX did not fall.
23. If markets stabilise, India VIX starts falling, then only we can be sure that bottom is made around 10000.
24. Now it is not the price move, it is the VIX move that matters for decision.
25. Nifty future may trade between 10200 and 10320.