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

October 5, 2018
Time: 8.10 am

Pre Market Report:

1. Yesterday I wrote "Pre Market Report" and while publishing, my computer automatically restarted due to some update issue.
2. I had to move to Investor Carnival, so did not have time to write again.
3. Yesterday was the worst day for our markets.
4. Oil marketing companies fell 20% in the last 15 minutes when Govt asked them to absorb Rs 1 per litre loss.
5. Reliance fell 8% yesterday, TCS fell 9% in the last two days.
6. Bluest of blue chip stocks are falling significantly.
7. The fear is so high.
8. Now SGX Nifty is showing another 50, 60 points lower.
9. This fall in the last 5 weeks is the worst after 2008 crash.
10. Nifty future was trading 30 to 50 points premium until day before yesterday and now all premiums wiped out.
11. So there is no incentive to short future now.
12. One can buy 10600PE and sell twice 10300PE.
13. Risk will be only below 10000, which is a very strong support.
14. Today once again markets will be highly volatile due to RBI policy at 2.30pm.
15. Rate hike by 25 basis point is already factored into prices.
16. Yesterday ICICI Bank saved the Bank Nifty from collapsing.
17. Huge selling continues from FII side.
18. Be ready for another roller coaster ride.
19. Markets are in oversold position, any good news can trigger a short covering rally.
20. Nifty 10500PE has the highest open interest, so that should be a good support.